Coventry Home saver into Loyalty bond?

gele

Hi
I was lucky enough to open the original Coventry home saver a few months ago. I see the interest rate is increasing but it wont be a high as the new Loyalty bond. I don't think there's any reason why I can't open the loyalty bond and transfer from Home saver as there doesn't seem to be withdrawal restrictions. Can anyone confirm this? As I understand it Home saver is effectively easy access and I was going to withdraw just under half the balance to put in the bond. I understand the bond is fixed so once in there I can't withdraw.
Thanks in advance 

AndyTh_2

The first issue of the Home Saver doesn't require notice, so you can withdraw when you want. The 2nd issue requires 60 days notice to be given or otherwise get a charge of 60 days interest.

you can see the details of the first issue in the wayback machine https://web.archive.org/web/20221218155823/https://www.coventrybuildingsociety.co.uk/member/product/savings/regular_saver/first-home-saver.html

gele

That's really useful. Thanks.

Growingold

Just an observation .  This time last year I opened the Coventry Loyalty Fixed Rate Bond to 31 08 23  The interest rate then was 2.70% .  So as rates have increased I have missed out on potential interest in a higher saving account.  At the time I thought it was a good rate.  I think the current one on offer now 5.90% is a  good rate though 6% can be had elsewhere.  This rate is over twice the rate offered this time last year.

gele

Yes I understand your point and this is why I was only going to transfer 1/2 across and leave 1/2 as effectively easy access at over 5%. Hedging my bets I suppose. I cant really see it doubling again in the next 12 months though. I don't ever remember banks widely offering 12%. Any thoughts and opinions are welcome though

Stargunner

gele said:

Yes I understand your point and this is why I was only going to transfer 1/2 across and leave 1/2 as effectively easy access at over 5%. Hedging my bets I suppose. I cant really see it doubling again in the next 12 months though. I don't ever remember banks widely offering 12%. Any thoughts and opinions are welcome though

I opened the home saver in December and have been paying in the max £1k per month, so I now have £8k in it. If I did what you are suggesting and put £4K in the bond, it would only earn me another £20 per year, providing the interest rates remain as they are. As they are predicting interest rates to go higher I will leave it as is.

gele

Hi thanks for that, I appreciate your contribution. I have a similar amount so maybe I shall leave it alone.

Growingold

gele said:

Yes I understand your point and this is why I was only going to transfer 1/2 across and leave 1/2 as effectively easy access at over 5%. Hedging my bets I suppose. I cant really see it doubling again in the next 12 months though. I don't ever remember banks widely offering 12%. Any thoughts and opinions are welcome though

I wasn't trying to make any point it was just an observation of how interest rates have changed in the past year.  No I don't think for a moment interest rates will double in the next year but they may well go up.  What we should be mindful of is our individual tax positions.  If our PSA for interest is £1,000 are we likely to exceed it in this tax year?   5.90% if we should need to pay tax at 20% effectively becomes 4.72% I personally have an ISA account which will shortly be paying 5% and which may well go up if interest rates increase so although I considered moving some of my FHS balance to the Loyalty Bond on reflection I decided it would be better for me personally to move it to my ISA where I can get access to it if needed.