Coventry BS launches best-buy easy-access savings rate

Coventry Building Society has launched a new best buy easy-access savings rate paying 4.5 per cent.

The Four Access Saver, which is available to both new and existing savers, can be opened online with just £1.

Thereafter, savers can deposit up to £250,000, though as with most savings accounts only up to £85,000 is protected under the Financial Services Compensation Scheme.

Someone putting £10,000 in this account could expect to earn £450 of interest over the course of a year, if interest rates remained the same.

However, the account does come with one major catch, which may put off savers who wish to dip in and out of their savings regularly.  

It only allows four withdrawals every 12 months, starting from the day the account is opened. Any additional withdrawals are subject to a charge equal to 50 days’ interest. 

> Check out the best easy-access savings rates here

Savers can choose from annual or monthly interest, which can be added to the account or paid into their linked bank account. 

Daniel McDonald, senior savings product manager at Coventry Building Society, said: ‘We’re expecting our new Four Access Saver account to be popular with savers looking to take advantage of a market-leading rate while still having access to their money if they need to.

‘The account is ideal for those looking for a place to save their rainy-day fund or are saving up for something specific, but don’t want to lock their money away and are able to withdraw their savings up to four times a year without charge.’

How does it compare?

In terms of the market average, Coventry’s deal is head and shoulders above it. The average easy-access rate is 2.58 per cent, according to Moneyfacts.

However, there are a number of deals that get close to Coventry Building Society’s rate.

The next best deal on the market is offered by Principality Building Society. Its Double Access account pays 4.45 per cent. 

However, as the name suggests it only allows up to two withdrawals each year.

The next best-paying deal that allows for unlimited access is offered by Shawbrook Bank, paying 4.35 per cent.

Savers can apply online and open the account with just £1,000. Someone depositing £10,000 in the account could expect to earn £435 of interest over the course of one year.