You are here: Home - Saving & Banking - News -

Coventry BS unveils market-leading cash ISA – but you may need to act fast

Written by:
The end of another ISA season has seen many providers cut or pull top deals, but some are bucking the trend and raising rates to entice savers.

Coventry Building Society today bumped the rate on its easy access ISA to 1.47%, taking it to the top of the best buy tables.

The move leaves previous table-topper, Kent Reliance, in second place, with a slightly lower rate of 1.46%.

While Coventry is now the top-payer, its rate includes a bonus of 0.32% for 16 months, so it will drop to 1.15% on 31 August 2020.

New and existing customers can open an account online with a minimum deposit of £1.

However, savers may want to act fast to take advantage of this deal as providers have been cutting their ranges since the start of the new tax year.

Analysis by Moneyfacts shows some of the top deals around at the end of the last tax year have been cut or withdrawn altogether, particularly in the short-term fixed ISA space.

For example, Oaknorth and Coventry have both pulled their competitive one-year fixed ISAs since 6 April, which were paying 1.74% and 1.70% respectively.

Natwest, RBS, Sainsbury’s Bank, Santander and Shawbrook Bank have also cut rates.

Rachel Springall, finance expert at Moneyfacts, said: “As many of the rate cuts come from challenger banks, it may be the case that they are adjusting their market position to deal with the onslaught of funds from savers.

“During a period of economic uncertainty, savers may well turn to short-term fixed ISAs instead of longer-term deals, so this increased demand may have impacted the flow of funds, therefore explaining the cuts to the short-term ISA market.”

However, providers are not cutting fixed rates across the board.

Kent Reliance increased the rate on its one-year fixed ISA earlier this month by 0.2 percentage points to 1.8% and Dudley Building Society bumped its one-year fixed ISA by 0.15 percentage points to 1.71% on the first day of the new tax year.

“There is still plenty of opportunity for savers to find a best buy fixed cash ISA,” says Springall.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape for summer, and moving your cash savings to a higher paying deal is ...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
income funds
Royal Bank of Scotland launches £175 switching offer

The Royal Bank of Scotland has matched NatWest’s switching offer, offering £175 to new and existing customers switching their main...