Coventry BS Loyalty Bond

typistretired

Coventry BS  matures 30.04.2023 have issued today a new loyalty bond @ 1.35% and you can pay in up to £20,000.00

Daliah

Another middle-of-the-road product from Coventry, dressed up as a limited edition.

12 months fixed bonds open to everybody, without £20k limit:

Zopa 1.36% AER (on £1,000+)
Atom 1.35% (on £50+)
Castle Trust Bank 1.35% (on £1,000+)
Hodge Bank 1.35% (on £1,000+)
Tandem Bank 1.34% 

All FSCS protected.

Some 15 and 18 months products also available at up to 1.51% AER (if you take out the Coventry one today, it's effectively a 14 months bond).

Also, BoE interest rate rise expected tomorrow.

EssexHebridean

We got the email on this as well and have agreed it's not for us. The rate is not *that* spectacular, and for us personally allowing that we expect to see interest rates on other savings products we have increase over the next few months, we're not feeling that locking away for 14 months at the rate offered is worth it. 

benny5

EssexHebridean said:

We got the email on this as well and have agreed it's not for us. The rate is not *that* spectacular, and for us personally allowing that we expect to see interest rates on other savings products we have increase over the next few months, we're not feeling that locking away for 14 months at the rate offered is worth it. 

Had an email also. Not sure about this. Will tax be deducted at source?  Don't want to faff about with that, also, the money to fund this would be from an easy access ISA currently paying .45%.

eskbanker

benny5 said:
Will tax be deducted at source?

Tax hasn't been deducted at source from savings accounts for six years.

benny5

eskbanker said:

benny5 said:
Will tax be deducted at source?

Tax hasn't been deducted at source from savings accounts for six years.

Thanks for that. Another question you may be able to assist with:

Is the threshold for tax declarations on saving and investment income (excluding ISA’s) still £1000?  

eskbanker

benny5 said:

eskbanker said:

benny5 said:
Will tax be deducted at source?

Tax hasn't been deducted at source from savings accounts for six years.

Thanks for that. Another question you may be able to assist with:

Is the threshold for tax declarations on saving and investment income (excluding ISA’s) still £1000? 

Not really - I assume you're referring to the personal savings allowance, but this isn't strictly a tax-free allowance as such but a nil-rate band, i.e. taxable income that happens to be taxed at 0%.  This is indeed £1,000 for basic rate taxpayers but £500 for higher rate ones, and only applies to savings, not investments (except for some with high proportions of fixed-interest holdings) - there are separate 'allowances' relating to (unwrapped) investments, such as £2K for dividend income and £12.5K for capital gains....

benny5

eskbanker said:

benny5 said:

eskbanker said:

benny5 said:
Will tax be deducted at source?

Tax hasn't been deducted at source from savings accounts for six years.

Thanks for that. Another question you may be able to assist with:

Is the threshold for tax declarations on saving and investment income (excluding ISA’s) still £1000? 

Not really - I assume you're referring to the personal savings allowance, but this isn't strictly a tax-free allowance as such but a nil-rate band, i.e. taxable income that happens to be taxed at 0%.  This is indeed £1,000 for basic rate taxpayers but £500 for higher rate ones, and only applies to savings, not investments (except for some with high proportions of fixed-interest holdings) - there are separate 'allowances' relating to (unwrapped) investments, such as £2K for dividend income and £12.5K for capital gains....

Really appreciate that. It's increased my understanding of the tax situation several fold.

missymouse

Yes I received this offer. Hoping the possible rate rise will trigger some better rates

savetilibleed

I took out this Loyalty bond at 1.34% (monthly interest). But a few months on the variable rates are about to equal it from 1 July from Coventry. But now there's another fixed rate Loyalty Bond on offer today at 2.7% ending 31 August 2023, or 3% ending 31 Aug 2024.

What_time_is_it

savetilibleed said:

I took out this Loyalty bond at 1.34% (monthly interest). But a few months on the variable rates are about to equal it from 1 July from Coventry. But now there's another fixed rate Loyalty Bond on offer today at 2.7% ending 31 August 2023, or 3% ending 31 Aug 2024.

Does the 2.7% Loyalty Bond offer at the Coventry allow joint accounts?
And if so, do both named account holders need to be existing customers (prior to Jan 2022, or whatever the cut off is) or just one of them?