Coventry BS savings account 28 December 2022 at 7:47PM in Savings & investments 8 replies 855 views

Yellowstone2

I'm currently looking to buy a place of my own (first time buyer) and have been saving for a deposit. Its been in my current account, and I realise it could be working better for me until I need it.

I've been looking at Martins 'best savings accounts' and thinking of applying for the Coventry BS 'Limited access saver' at 2.85% (6 penalty free withdrawls, which would be adequate for what I need it for)

I've just gone on the website to open one, and its flagged up an important notice saying the interest rate is going to rise from 2.85% to 3.25% on 6th January. It does say its a variable rate, so I'm right in thinking if I opened it now, the higher interest rate would be applied from 6th? I can't see anywhere that it says the rate is fixed, it definitely mentions variable, but it's just making me hesitant as its giving a 'warning' almost like it's suggesting not to open the account until 6th!

The second thing I'd like to ask, if anyone has this or similar account, how quickly have you been able to withdraw the money if/when its needed? It's an online account, would transfers be as quick as transfers between current accounts, or is it a bit more complicated as it's a savings account?

Any advice much appreciated, thank you.

ColdIron

I opened one of these a few weeks ago and am planning on moving the cash in my Paragon Triple Access account into it on the 6th for the 3.25%

I haven't withdrawn from it but it seems to be next business day, so not as quick as a current account but fine for a deposit

https://forums.moneysavingexpert.com/discussion/comment/79732448/#Comment_79732448

Yellowstone2

ColdIron said:

I opened one of these a few weeks ago and am planning on moving the cash in my Paragon Triple Access account into it on the 6th for the 3.25%

I haven't withdrawn from it but it seems to be next business day, so not as quick as a current account but fine for a deposit

https://forums.moneysavingexpert.com/discussion/comment/79732448/#Comment_79732448

Thank you ColdIron, thats really helpful! I'll have a look through the most recent pages of the thread you linked too   

4justice2

It's variable, if you open the account at 2.85% now it will go up to 3.25% on 6.1.23. (that's the standard date for most Coventry variable accounts to increase). 
It's an EASY access account, not an INSTANT access account. So withdrawals normally arrive in your nominated account the next working day after the withdrawal request. (And as you've already mentioned there's a penalty if you make more than six withdrawals in a year).

Black_Cat2

Can you withdraw all the money you've put in there and leave £1 in it so that just the £1 incurs the 6+ penalty? 

AntoMac

I’ve got one and it’s definitely variable. Has been good to see them passing on the interest rates recently. Withdrawals from any Cov account seem to be next day, certainly the ones I have.

TiVo_Lad

Black_Cat2 said:

Can you withdraw all the money you've put in there and leave £1 in it so that just the £1 incurs the 6+ penalty? 

It's the account that's subject to the six withdrawls, not the money. as the Coventry Website says:

This is a limited access account. You can take money out of your account up to six times a year without having to pay a charge. From the seventh withdrawal onwards (which can include closure), you’ll receive a charge equal to 50 days’ interest based on the amount you’re withdrawing. The charge will be deducted from the balance of the account, at the time of the withdrawal. Each ‘year’ in this case starts on the anniversary of the day you opened the account.

So if you take out all your money bar £1, that's one withdrawal and you have five left in any 12 month period starting from the anniversary date (i.e. the date you opened the account). This resets every year, so if you open an account on 1st Feb, you can make six withdrawals until 1st Feb the following year when the number of withdrawals goes back to six.

Black_Cat2

TiVo_Lad said:

Black_Cat2 said:

Can you withdraw all the money you've put in there and leave £1 in it so that just the £1 incurs the 6+ penalty? 

It's the account that's subject to the six withdrawls, not the money. as the Coventry Website says:

This is a limited access account. You can take money out of your account up to six times a year without having to pay a charge. From the seventh withdrawal onwards (which can include closure), you’ll receive a charge equal to 50 days’ interest based on the amount you’re withdrawing. The charge will be deducted from the balance of the account, at the time of the withdrawal. Each ‘year’ in this case starts on the anniversary of the day you opened the account.

So if you take out all your money bar £1, that's one withdrawal and you have five left in any 12 month period starting from the anniversary date (i.e. the date you opened the account). This resets every year, so if you open an account on 1st Feb, you can make six withdrawals until 1st Feb the following year when the number of withdrawals goes back to six.

Thanks!  Can you add funds as often as you like or is that limited please? 

ColdIron

Yes you can