Coventry BS 'NetSave Easy' Query

haselden

I checked the T&C's for the Coventry BS NetSave Easy account they state:-

'Therefore, up to and including 30th June 2005, only the amount of the opening deposit which exceeds the minimum balance and which remains in your account on 30th June 2005 will earn interest at 5.40% AER/gross per annum.'

The minimum balance they say is £2000. Does this mean that if you deposit £3000, you only get interest on £1000?

I know I must be wrong........

The Coventry email query service wont work for me at the moment, so I've signed up here, can someone help me please?

MarkyMarkD

It would have been easier if you'd quoted the whole lot or at least provided a link.

The link is http://www.covbsoc.co.uk/netsaveeasyaccess.asp and the full quote is

You can have immediate access to the funds held in your account. However, up to and including 30th June 2005, the rate of interest applied to any amount withdrawn will be 4.00% AER/gross per annum. This interest will be calculated from the date your account was opened up to and including the day before the withdrawal is debited. Therefore, up to and including 30th June 2005, only the amount of the opening deposit which exceeds the minimum balance and which remains in your account on 30th June 2005 will earn interest at 5.40% AER/gross per annum. After 30th June 2005, you can have immediate, penalty free access to your funds.

which makes it rather clearer.

What they are saying is that, unless you comply with the minimum balance of £2,000 throughout the period to 30 June 2005, you won't benefit from the fixed rate of 5.40% and will instead get the 4.00% rate, throughout the period.

AND even if you do comply, the 5.40% will be paid on the minimum balance through the whole period, with 4.00% paid on the rest.

For an "easy access" account, its terms are certainly not easy.

You can get a far more straightforward 5.5% from Egg. I would steer clear of this product.

haselden

Hi MarkyMarkD, thanks for your reply, sorry about no URL. I followed the link in Martins new Instant Access Savings article.

He said it was the top non-intro rate payer, either I got the wrong account, or the Terms have changed, as Martin said it was a minimum £1 deposit. not £2000 !!

I've read and read again those terms, and cannot get the same meaning from them as you have. But that to me is good enough reason to avoid this account.

I liked the idea of a fixed interest rate till next June, as I feel rates next year will start to come down again.

Thanks again MarkyMark, I'll have a look at that Egg account.