Bank rate Coventry BS

singhini

Ive just gone to their website and looked at their current rates (and the rates on their closed accounts). Coventry Building Society were offering a 3 year fixed rate bond @ 4.85% back in October 2022 when i think BoE interest rate was 2.25% (that's bonkers)! Granted it lloks like it was only available for 2 days, but nonetheless that's one hell of a good rate [fixed rate bond 288 31/12/2025].
Then a few weeks later they launched basically the same thing again however the rate was now 4.75% but you did get a more generous 6 days to open the account [fixed rate bond 294 31/12/2025].

I don't bank with CBS but are they usually this generous ? 

[Deleted User]

Hi,

Bobblehat said:

frugalmacdugal said:

Hi,

need to wait a couple weeks yet,

READ.

I read through the article twice but must admit to missing any hint as to why there may be more to come in the next couple of weeks from Coventry? Is it that the changes already announced come into effect on 1st March or have I missed something?

sorry for the confusion, was meaning that another couple of weeks before increase becomes 'live'.

Johnjdc

singhini said:

Ive just gone to their website and looked at their current rates (and the rates on their closed accounts). Coventry Building Society were offering a 3 year fixed rate bond @ 4.85% back in October 2022 when i think BoE interest rate was 2.25% (that's bonkers)! Granted it lloks like it was only available for 2 days, but nonetheless that's one hell of a good rate [fixed rate bond 288 31/12/2025].
Then a few weeks later they launched basically the same thing again however the rate was now 4.75% but you did get a more generous 6 days to open the account [fixed rate bond 294 31/12/2025].

I don't bank with CBS but are they usually this generous ? 

Rates were high at that point because of the Truss crisis. I got 4.65% for a 1-year fix, 5-year fixes inched over 5%.

The BoE interest rate at a given point in time is neither here nor there when looking at long-term fixes, any more than the weather forecast today tells me anything about the odds of flooding in September or a White Christmas.

singhini

@Johnjdc wrote:
"The BoE interest rate at a given point in time is neither here nor there when looking at long-term fixes, any more than the weather forecast today tells me anything about the odds of flooding in September or a White Christmas."

I'm not sure i agree, BoE rate has to be taken into account on both short term and long term fixes (Lenders generate money from things like charging account fees and interest on loans or they borrow money from others i.e. deposits, other banks or BoE. Hence why BoE rate needs to be taken into consideration).


@Johnjdc wrote:
"Rates were high at that point because of the Truss crisis. I got 4.65% for a 1-year fix, 5-year fixes inched over 5%."

I can't find other lenders offering those kind of rates during the same time period.
Hence my question "I don't bank with CBS but are they usually this generous ?" 
i can only guess they either historically borrowed cheaply or forecast rate rises or both.