Coventry BS-o 60 a/c

roddydogs

Isnt it a bit naughty of Cov bs to bring out a "over 50" ac paying more than the old "over 60 a/c, then banning this a/c to existing customers?:mad:

earlgrey_3

roddydogs wrote: »

Isnt it a bit naughty of Cov bs to bring out a "over 50" ac paying more than the old "over 60 a/c, then banning this a/c to existing customers?:mad:

It is but seems the days when mutual societies were warm and cuddly caring only for the interests of their members are long gone. Now it's business is business and catch as catch can.

We put a large lump of money in that account when it was fixed at 6.4%. Great deal, fixed rate but instant access if better rates appear elsewhere. What I'm wondering is what they'll offer after 12 months. Seems a daffy way to run things if we're barred from moving to another competitive product with them and obliged to go somewhere else.

Milarky

Milarky wrote:

With Coventry BS they won't do anything - being a building society they are now sitting pretty with all the deposits they have been building up since Northern Rock blew up and don't need to be generous. Like other institutions they rely on inertia (and the absence of negative publicity) to retain savings. They like to favour new customers over existing ones (Alway was thus and always will be thus)

Well eat my hat! Coventry have given in - and granted a further 9 months (at the current 50+ esaver rate) to 60+ accounts coming to the end of their fixed rate this month:

http://www.coventrybuildingsociety.co.uk/savings/ProductFeatures.aspx?ProdCode=SPES

Sixty-Plus eSave

Sixty-Plus eSave is an online savings account available exclusively to the over 60's. It offers a high rate of interest with penalty-free easy access to your money, using our Online Services.

Interest

Effective from 1st June 2008. IMPORTANT for details of the rates effective from 1st July 2008 please see note 5 below.

Annual Interest - 5.12% AER, 6.40% Gross p.a. 5.12% Net equivalent p.a.

Monthly Interest - 5.11% AER, 6.20% Gross p.a. 4.96% Net equivalent p.a.

The gross interest rates are fixed until 30.06.2008 and are variable thereafter. On 01.07.2008 the annual AER/gross p.a. interest rate will at least equal the Bank of England Base Rate, and the monthly AER will be no lower than 0.15% below the Bank of England Base Rate. The AERs assume the account is opened on 01.06.08. For annual interest assume a gross p.a. rate of 6.40% to 30.06.08 and on and from 01.07.08 to 31.05.09 a gross p.a. rate of 5.00%. For monthly interest assume a gross p.a. rate of 6.20% to 30.06.08 and on and from 01.07.08 to 31.05.09 a gross p.a. rate of 4.89%.

5. From 1st July 2008 the new rate on your account will be 6.25% gross p.a. 5.00% net equivalent p.a. which will be fixed for nine months until 31st March 2009, a full 1.25% above the current Bank of England Base Rate. After 31st March 2009, your rate will become variable and we guarantee that the AER will equal the Bank of England Base Rate until 30th June 2009. This produces an overall AER of 5.94% .

roddydogs

I e-mailed them, im actually getting 6.20% till July, when my year is up, thou the website just says 5.23%.. Their argument was "everyone gets a year at a higher rate", well ill just wait till july, then put it into Kaputhing.!

earlgrey_3

Milarky wrote: »

The only thing I can suggest is if you send them firm a message now to say how you intend to move your money before the end of June (when the current rate drops) unless the follow up offer (currently, what. 5.25%?) is bettered OR you are offered an inducement now which you would consider...

The accounts we've got guarantee 6.4% till April 09. I moved a large chunk out last week for another investment but the beauty of that account is that money can be moved either in or out instantly and still gets the fixed rate.

I suspect you're right and that come April we'll be waving good-bye. I assume they think the strategy benefits them somehow but bit of a mystery to their ex-customers.

Milarky

[opps! edited my old post rather than added here]

Well eat my hat! Coventry have given in - and granted a further 9 months (at the current 50+ esaver rate) to 60+ accounts coming to the end of their fixed rate this month:

(see post #3 above for the details)