Coventry First - Upped Rate!

codetown

As expected Coventry has upped the rate of the Coventry First account:

http://www.coventrybuildingsociety.co.uk/savings/ProductFeatures.aspx?ProdCode=CA3

From 1st June:
Coventry First - 1st year: 6.10% AER
Coventry First - 2nd year: 5.72-5.77% AER (depending on balance, over 10k)

ED

5.13% gross is the new rate for all balances under £10,000 for people with the account for 12 months or longer. A split balance method is used, so only the portion of a balance above £10,000 earns 5.70% gross.

I now consider the account uncompetitive (although I enjoyed my 1st year at high rate!)

Ted_Bloke

:rolleyes: Thinks... I'm glad to hear they've upped, won't transfer massively out of them to HSBC after all as rates nearly equal;
:rolleyes: Thinks again, ah but I see HSBC are about to up theirs to 6% (online saver) so I should move.
Pity, I had a bit of historic loyalty towards Cov.
And it has to be an all-or-nothing thing because to keep a good rate I have to pay in 1K/month, there is no point paying that into a lower-yeilding account so I have to clear it all out.

p1an0player

I haven't yet opened a Coventry First account. The AER is now 6.1% so it beats even ICICI and the strings-attached askbm accounts at 6.05%, yet it offers debit card, tracks BOE + 0.6%, has branch access and the facility to directly dripfeed regular savings accounts elsewhere ..

It's a no-brainer, isn't it? Let's pile in!! Just need to pay in £1,000 per month from any external source, and remember to switch after a year?!

Am a bit confused as to why Martin says you have to earn £50k + though.

ED

In my family's experience, Coventry Bdg Soc do not require Coventry First account holders to have any minimum annual earnings (unless T+C have changed recently?) The only relevant requirement is to deposit not less than £1,000 per month from external source(s). This can be via cheque(s) posted to the Society's Freepost address.

I share Ted Bloke's situation of feeling a 'loyalty' towards the Coventry, but as my Coventry First has passed its 1st anniversary my rate is now uncompetitive at 5.13% gross, so my funds will go elsewhere.

codetown

ED wrote: »

This can be via cheque(s) posted to the Society's Freepost address.

This 1k transfer can also be via BACS from any account (also easily done online).
Coventry First is pretty good (and by far the best account) for customers in their first year. I think Coventry should rethink their strategy for the others. If they cannot be the best for all they should at least try to simplify things, remove the layered approach and offer a flat say 5.7% on all savings (and not only on the portion above 10k).
That would convince a few more to stay!

ED

Great idea, codetown. 5.70% would persuade me to stay with Coventry Bdg Soc. The Society is likely to lose many Coventry First account holders as a result of the 5.13% rate.

Re monthly deposits totalling not less than £1,000 via BACS, I advocate doing it on Mondays-Wednesdays, to avoid nil interest for extra days during weekends.