Coventry 5 yr fixed rate ISA 5%

Old_Slaphead

Not seen any mention of this so far.

5 year cash ISA account at 5% with a 120 day penalty for instant access (giving notice is not an option).

Effectively that's a return of 3.33% for 1yr, 4.16% for 2yr, 4.44% for 3yr, 4.58% for 4yr or 5% for 5 yrs.

Seems a decent offer - or am I missing something ?

kidmugsy

Old_Slaphead wrote: »

Not seen any mention of this so far.
....[/QUOTE

Then you've not looked very hard

I've hymned its praises repeatedly. Looks an excellent deal to me. Combined with an ILSC it's a good part of my usual answer to those "Wot shall I do with all my cash?" enquiries.

MoneySaverLog

Yes inflation is predicted to drop and interest rates increasing over that timeframe. You're taking a gamble on interest rates remaining low for 5 years. If they increase you're stuck at the 5%

Old_Slaphead

kidmugsy wrote: »

Then you've not looked very hard

I've hymned its praises repeatedly. Looks an excellent deal to me. Combined with an ILSC it's a good part of my usual answer to those "Wot shall I do with all my cash?" enquiries.

Mmmm - rather stupid of me to expect something under a "Coventry BS Cash ISA" type subject rather than needing to trawl through a plethora of ostensibly unconnected threads (mostly uninteresting to me) on ISA transfers, pension cash appropriation, redundancy money etc etc. to elicit someone else's views

Old_Slaphead

MoneySaverLog wrote: »

If they increase you're stuck at the 5%

No you're not. Immediate withdrawal allowed with 120 days interest penalty.

rickypatel89

Hi, I'm also interested in this ISA too, I have this years full allowance in a Santander ISA giving me 3.35% & last years allowance in the Halifax Direct ISA giving me 3.2% (I think). I'm thinking of transferring both of these to the conventry ISA, but I'm not too sure on how the penalty for withdrawal works. Is the 120 day penalty applied to the value of my ISA when I give them notice for withdrawal?

ffacoffipawb

rickypatel89 wrote: »

Hi, I'm also interested in this ISA too, I have this years full allowance in a Santander ISA giving me 3.35% & last years allowance in the Halifax Direct ISA giving me 3.2% (I think). I'm thinking of transferring both of these to the conventry ISA, but I'm not too sure on how the penalty for withdrawal works. Is the 120 day penalty applied to the value of my ISA when I give them notice for withdrawal?

Unlike the BM one that I transferred into last month from Lloyds TSB, the Coventry version doesn't accept transfers in. Well, it didn't last month anyway.

The BM version available has now dropped to 4.65% for 5 years.

Funkyfreddy

rickypatel89 wrote: »

Hi, I'm also interested in this ISA.....[snip]....I'm thinking of transferring both of these to the conventry ISA, .......[snip]

You can't - well not at least with the current Five Year Fixed Rate (Iss7) ISA.

FF

bigfreddiel

Old_Slaphead wrote: »

Not seen any mention of this so far.

5 year cash ISA account at 5% with a 120 day penalty for instant access (giving notice is not an option).

Effectively that's a return of 3.33% for 1yr, 4.16% for 2yr, 4.44% for 3yr, 4.58% for 4yr or 5% for 5 yrs.

Seems a decent offer - or am I missing something ?

yes you are - basically you're withdrawing your dosh, so if you've used up your allowance and you're thinking of getting a higher rate isa you're stuffed.

For example - say you have £30k in this isa (transferred in) - in to years time ISA rates are 8% you would not be able todoa transfer of the £30k - you would need to withdraw the money, and of course you can only pay in £5340 into an isa per year so the remainder would have to stay at 5%

anyway this is all immaterial as interest rates are not going up anytime soon.

hope thst helps

fj

charlieboycat

bigfreddiel wrote: »

For example - say you have £30k in this isa (transferred in) -

Tricky since it doesn't accept transfers in .... anyway, wouldn't "withdrawal" (with 120 day penalty) encompass an "ISA transfer out" (it does with Nationwide)?

Funkyfreddy

bigfreddiel wrote: »

yes you are - basically you're withdrawing your dosh, so if you've used up your allowance and you're thinking of getting a higher rate isa you're stuffed.

For example - say you have £30k in this isa (transferred in)....[snip]

Not possible as no transfers in are allowed. Max you can have would be the current 2011/12 allowance of £5,340

bigfreddiel wrote: »

....in to years time ISA rates are 8% you would not be able todoa transfer of the £30k - you would need to withdraw the money, and of course you can only pay in £5340 into an isa per year so the remainder would have to stay at 5%...

I know its states "Closure by Withdrawal only" with the loss of 120 days interest which you are taking as closure and removal of capital by means other than a transfer BUT would a transfer be considered closure by withdrawal ?

Do ISA rules specilically allow ISA managers to refuse a transfer as a means of closure ?


Regards
FF