Price war kicks off as Coventry BS unveils a market-leading easy access account paying 3.25%.
If you like the thought of saving, but want to be able to get to your money in an emergency, then the new market-leading easy access savings account from Coventry Building Society could be just the ticket.
The Telephone Saver
Coventry is offering savers a 3.25% return on their savings pot with a new easy access savings account, the Telephone Saver. All you need to open the account is £500 and the maximum you can put in is £250,000.
The account offers unlimited withdrawals, so no penalties if you need quick access to your cash. However, you’re required to withdraw a minimum of £500 to stay penalty-free each time, which is annoying if you only need a couple of hundred!
As the name suggests, the Telephone Saver is an account that you need to manage over the phone. Traditionally, because online accounts are the cheapest to run, they tend to offer the best rates. That's great for internet-savvy people, but can ostracise older savers, so this is a welcome change for them. Personally I think this will also help people resist the temptation to dip into their savings willy-nilly.
The bonus
It is also worth pointing out that the attractive headline offer is boosted by a 1.25% bonus. Some people don't like bonuses, arguing that they artificially inflate the rate for a year.
[SPOTLIGHT]However, this bonus boost for your savings is only temporary and will expire after 12 months. After this period the account will revert onto a far less attractive rate, so it is important to keep a note of the anniversary to remember to move your savings pot on.
Rates war
Coventry's Telephone Saver is just the latest launch in a busy few days in the easy access market. ING Direct has also ramped up the rate on its instant access deal to 3.19% for new customers (including a 2.64% bonus for 12 months), while West Bromwich Building Society has moved into second place in the best buy tables with its Direct Bonus account paying 3.22%.
The big downside with the West Brom account is that customers will have to have a minimum deposit of £10,000.
Top easy access savings accounts with a bonus
If you like the thought of a juicy bonus with your easy access savings account, take a look at the best deals I could find at the moment.
|
Account |
Interest Rate AER |
Minimum Deposit |
Withdrawal limits |
Bonus |
|
3.25% |
£500 |
Unlimited |
1.25% |
|
|
West Bromwich BS Direct Bonus Account 4 |
3.22% |
£10,00 |
Four penalty-free withdrawals a year |
1.71% |
|
3.20% |
£1 |
Unlimited |
2.70% |
|
|
3.19% |
£1 |
Unlimited |
2.64% |
|
|
3.06% |
£1,000 |
Unlimited |
2.06% |
|
|
3.06% |
£1,000 |
One penalty-free withdrawal a year |
1.52% |
|
|
2.80% |
£1 |
Unlimited |
1.55% |
|
|
Halifax Online Saver |
2.80% |
£1 |
Unlimited |
2.70% |
|
2.80% |
£1,000 |
Unlimited |
0.89% |
Whatever deal you decide on, the bonuses bolstering these attractive rates typically expire after a year so you will want to move your savings on to ensure you are still benefitting from the best returns.
Top easy access savings account without a bonus
For some this can be too much of a headache. If that’s the case perhaps a gimmick-free easy access account without a bonus would be better.
|
Account |
Interest Rate AER |
Minimum Deposit |
Withdrawal limits |
|
2.75% |
£1,000 |
Unlimited |
|
|
Virgin Easy Access E-Saver Issue 2 |
2.60% |
£1 |
Unlimited |
|
2.56% |
£1,000 |
One penalty free withdrawal a year |
|
|
The Cambridge BS e-Saver |
2.55% |
£1 |
Unlimited |
|
2.50% |
£1 |
Unlimited |
Unfortunately, the best account with no bonus from Aldermore delivers a far lower return than the Coventry deal.
You will need to decide whether or not this is a sacrifice you are willing to make on the growth of your savings, but at least you won’t be shocked by the rate plummeting 12 months down the line!
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