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

sparkiemalarkie

jd84 said:

Did anyone else notice the monthly interest version must be paid into a different account?

However the website still lets you select adding it to this Isa...

Annual interest can be added to the account or paid into another suitable account. Monthly interest must be paid into another suitable account

Does anyone know why that might be?

I can understand them rejecting future deposits once the issue closes, but surely they could accept their own interest? 

Gosh I hadn't noticed this when I applied. I opted for the monthly interest and to be added to the account....the interest rate quoted on my account for monthly interest is 4.31% ...so I'm assuming that the interest will be added to the ISA and compounded to make 4.4%

jd84

Not according to the terms, so it will be interesting to see what actually happens.

alternate

If you selected monthly and it doesn't make you specify an account to pay it to (because you wanted it added back in) then I guess they would not know where to pay it.

sparkiemalarkie

alternate said:

If you selected monthly and it doesn't make you specify an account to pay it to (because you wanted it added back in) then I guess they would not know where to pay it.

I've just read the T&C's again and it seems that it does need to be paid away. I can't remember specifying an account for the interest to be paid into though.
I will phone tomorrow to see if they can change my account to annual interest, if not I will transfer it across to to one of the other fixed rate ISAs as I'm still within the 14 days... It makes sense to take a lower interest rate to keep the interest within the tax wrapper.
Goodness knows where my head was at when I filled out the application....

sx

Rheumatoid

Shedman said:

justwantedtosay said:

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! 

If undecided about how long to fix then Paragon Bank offer an ISA portfolio advantage in that you can open several length fixes and split the £20k between them without breaching the rules.  Their rates for 18mth, 2yr and 3yr are competitive and 28 days to fund so can wait to fund to see if anything better appears (or decide how much into put into each pot)

Can you open several over a period of months and then have 28 days to fund each of them?

sparkiemalarkie

I contacted Coventry this morning and I was able to change the interest payment to annual. 
Thank you for pointing out my mistake.

sx

JGal

Anyone have a crystal ball to tell if this one is worth opening now or if it will be a typical rate in a couple of months' time? 

[Deleted User]

JGal said:

Anyone have a crystal ball to tell if this one is worth opening now or if it will be a typical rate in a couple of months' time? 

I've no crystal ball but I'm pleased to now be allowed to add to it from my maturing Coventry non-ISA on 30 April.  At first it looked as if this would not be possible but Coventry have confirmed to me that funds from their maturing savings accounts on 30 April can be added to this 4.4% ISA.

I'm inclined to think that this ISA will close to new applicants some time soon - but I'm far from experienced and it's just what I think.   I hope you make the best decision for you, JGal - all the best. 

JGal

Deleted_User said:

JGal said:

Anyone have a crystal ball to tell if this one is worth opening now or if it will be a typical rate in a couple of months' time? 

I've no crystal ball but I'm pleased to now be allowed to add to it from my maturing Coventry non-ISA on 30 April.  At first it looked as if this would not be possible but Coventry have confirmed to me that funds from their maturing savings accounts on 30 April can be added to this 4.4% ISA.

I'm inclined to think that this ISA will close to new applicants some time soon - but I'm far from experienced and it's just what I think.   I hope you make the best decision for you, JGal - all the best. 

Available to open until 27 April

RG2015

JGal said:

There seems to be a couple of providers with 1 year rates above 4.4% now. 

Which ones?