Best buy easy-access savings rate launched by Coventry Building Society

New easy-access best buy savings deal launched by Coventry Building Society: Will it help trigger competition from rivals?

Coventry Building Society has launched a best buy easy-access savings account today paying 0.55 per cent.

This rate nudges it as the outright top deal in the independent This is Money savings tables, above Marcus Bank, Cynergy Bank, Leeds Building Society and Saga, which all offer 0.5 per cent.

The account from Britain’s second biggest mutual is a limited access account – that is, money can be withdrawn a maximum of six times a year.

Top rate: Coventry Building Society has launched a top paying easy-access savings rate

Cash in the account is protected by the Financial Services Compensation Scheme and it can only be opened and managed online. Accounts can be opened with £1.

However, Daniel McDonald, senior savings product manager at Coventry, warns that the account is likely to prove popular – which indicates it might not stick around for long.

He said: ‘We’re expecting it to be popular with savers, who are looking to take advantage of a market-leading rate while still having access to their funds if they need to.

‘The account is ideal for savers looking for a place to save their rainy-day fund or who are saving up for something specific, who don’t want to lock their money away but don’t expect to need constant access to it.’

The move could help stimulate competition in the easy-access market. 

Rates on bread and butter accounts have been in the doldrums for some time.

Marcus was the main driver of easy-access rates pre-pandemic, with billions of pounds pouring into the Goldman Sachs-owned UK bank as it sat on top of the best buy tables since launch in summer 2018.

However, a flood of deposits during the pandemic left it close to breaking regulatory limits, meaning for a while, it pulled the account.

Meanwhile, savers have seen an increase in better-paying fixed-rates in recent months, with more providers competing in that area. 

Average fixed rates rose monthly for the first time since October 2020, according to Moneyfacts data earlier in the week, while choice grew to the highest number seen this year. 

But despite that, rates on all accounts – easy-access, fixed-rates and Isas – are way down on pre-pandemic levels, meaning savers are struggling to find a return on their cash, especially with inflation riding above 2 per cent.