Coventry BS Loyalty Bond

happybagger

I have gone for the 2 year 3% offering. I agree with most that fixed rates will rise further but in my calculation I have offset that thought with the fact that the funds have come from a RS account paying 1.8% currently. My view is I will gain in the first year but will probably lose a bit in the second year.

RobinhoodSavings

What_time_is_it said:

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?

Both have to be existing customers since 1 Jan 2022 or earlier.  

Thumbs_Up

RobinhoodSavings said:

What_time_is_it said:

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?

Both have to be existing customers since 1 Jan 2022 or earlier.  

Did you have a quiet word with your "mate". He got a lot of people very excited on here.

talexuser

eskbanker said:

 £12.5K for capital gains....

£12.3k typo

missymouse

all opened.

I never seem to get the timings right though as other cash is tied up in lower paying accounts with fixed rates

happybagger

I just laughed my moobs off.

Newbury BS are "celebrating their 165th anniversary" with the launch of a 3 Year fixed rate bond. Min balance £10,000.

Wait

for

it

...


1.65% fixed 

neurosurgeon

3% is pretty decent - does it compound?

happybagger

If you leave the interest in the bond, then yes. Interest added 31 August yearly

wiseonesomeofthetime

So three years' worth of interest for the maturity tax year calculations.

Something that some may wish to take into consideration.

Notepad_Phil

wiseonesomeofthetime said:

So three years' worth of interest for the maturity tax year calculations.

Something that some may wish to take into consideration.

I'm not sure if I'm misunderstanding what you're saying, but from what I can see, each year's interest will be taxed (if necessary) in the year that it is added to your account, not all added together and taxed (if necessary) in the maturity year.

There are very few accounts where all the interest is added together and paid in the final year, I think the NS&I green savings bond is one of the few that do, but from what I can see this Coventry account isn't - e.g. it allows the monthly or annual interest to be paid out and so even if it you choose not to do that it means the interest is taxable as it is paid.