Coventry BS launching tomorrow 6 April Fixed Loyalty cash ISA 4.4%

RobinhoodSavings

You need to be a member continuously since 1 Jan 2022 to open one. Best to apply for it online. The phones will be busy as hell tomorrow to get through because of the oldies not doing it online. 

Oasis1

Ah that's me out of the running. I've been with them since Sept last year but will probably stick with them as impressed so far. Hopefully there'll be other opportunities next financial year!

nottsphil

allegro120 said:

TiVo_Lad said:

Have they indicated what the Loyalty criteria is/are?

No, they just said that I can login, view and open it tomorrow.  No other details except it's 4.40% fixed until 31.05.2024‌.  Good timing, I was going to fund my 4.25% loyalty YSB tomorrow morning.

That could be folly. Lots of other people shifting money out could force YBS to up the rate by 0.25% to 4.5% (for first £20000). Then you'd be kicking yourself because you would be trapped at 4.4%, unless you paid the withdrawal penalty.

Rich2808

Oasis1 said:

Anyone know how many days interest the withdrawal penalty will be?

It is typically 90 days loss of interest/penalty for a one year fixed rate isa - their current standard one year fixed rate ISA is 90 days.

[Deleted User]

RobinhoodSavings said:

You need to be a member continuously since 1 Jan 2022 to open one. Best to apply for it online. The phones will be busy as hell tomorrow to get through because of the oldies not doing it online. 

I have just edited my post because, after not being able to open the new Loyalty ISA on line, I telephoned this morning.

Coventry say their on line system is "Down" and their IT Department are working on it.  It is not possible to open the account on line or by telephone and I was advised to ring again later.

jd84

This is working online for me currently 

More details can be seen here which answers most of the questions asked so far:

https://secure.coventrybuildingsociety.co.uk/savings-and-investments/productfeatures.aspx?prodCode=LFI1&CTALinks=False

justwantedtosay

Tempting, but my concern is that I might be getting a really good rate for a year but by the time I need a new account in 2024 rates will have gone down significantly. I don't think anyone has much idea about which way rates are going; I was just looking through loads of providers' offers and some, the largest group, show that the longer you fix for the lower the rate you'll receive, some the opposite, though the change is much less, and a couple offer the same rate regardless of time.

Some 5 year fixes are down around 3%, which must signal they expect rates to be much lower in the not too distant future. If you take this 4.4% but find the best fix you can get next year is 3% you'll be a lot worse off than if you fixed for 5 years now at 4.2%. Obviously something could happen to make next year's rates much higher than they are now. I made the mistake of transferring into one of these loyalty fixes at 2.7%, I doubt 4.4% would be such a bad move but I have opted for 5 years at 4.2%. Only time will tell if it was the right choice, but if the base rate and RPI fall back as far as many expect, I'll be laughing. Especially if the predictions of negative inflation come true. 

I you know you only want to fix for a year I'd grab this offer with both hands though! 

justwantedtosay

nottsphil said:

allegro120 said:

TiVo_Lad said:

Have they indicated what the Loyalty criteria is/are?

No, they just said that I can login, view and open it tomorrow.  No other details except it's 4.40% fixed until 31.05.2024‌.  Good timing, I was going to fund my 4.25% loyalty YSB tomorrow morning.

That could be folly. Lots of other people shifting money out could force YBS to up the rate by 0.25% to 4.5% (for first £20000). Then you'd be kicking yourself because you would be trapped at 4.4%, unless you paid the withdrawal penalty.

IF YBS did offer 4.5% you could gain £20. Not sure that counts as folly or a reason to kick yourself, not very hard anyway. Miss this in the hope of something better and you could lose a lot more.

[Deleted User]

I managed to open the Loyalty Isa on line and received email confirmation that the account is open - pleased with my decision.

RobinhoodSavings

Their website it fixed now.