You can keep your money safe and help a good cause all at the same time.
Coventry Building Society has launched this year's Poppy Savings Bond, offering a rate of 2.35% fixed for three years.
The selling point of the Poppy Bond, which is launched for a limited period each November, is that Coventry will make a donation to the Royal British Legion based on your deposit size. This year, 0.15% of your total balance will be donated, so if you put £2,000 into the Poppy Bond, Coventry will donate £3 on your behalf. Since 2008 Coventry Building Society has donated £12 million to the charity through the Poppy Savings Bond.
All you need is £1 to open the account, and it can be managed by phone, by post or online.
Be warned, the Poppy Bond probably won't be around for long; it was withdrawn after just 13 days last year, according to Moneyfacts.
How does it compare to the competition?
Let’s have a look at the top three-year bonds on the market right now:
|
Account |
Interest rate (AER) |
Minimum deposit |
Account access |
|
Al Rayan Bank |
2.73%* |
£1,000 |
Online, in-branch, post, online |
|
2.70% |
£1,000 |
Online |
|
|
Milestone Savings |
2.65% |
£10,000 |
Online |
|
Charter Savings Bank |
2.55% |
£1,000 |
Online |
|
Shawbrook Bank |
2.55% |
£5,000 |
Online, post |
|
National Counties Building Society |
2.51% |
£10,000 |
Online, in-branch, post, phone |
|
UBL |
2.50% |
£2,000 |
In-branch, post |
|
Bank of Cyprus UK |
2.46% |
£10,000 |
Online, in-branch, post, phone |
|
Hampshire Trust Bank |
2.45% |
£1,000 |
Post |
|
Close Brother Savings |
2.45% |
£10,000 |
Online, post |
*Expected profit rate
As you can see, there a host of rival savings bonds offer a higher interest rate. So while opening a Poppy Bond may count as a good deed, it will cost you a few pounds compared to opening an account with one of the providers above.
For more great savings rates, check out The best fixed-rate savings accounts.
Better off with a bank account
If you only have a small savings balance, you’d still get more interest out of a leading current account. For example, the Nationwide FlexDirect Account offers 5% interest on balances up to £2,500 for the first year, dropping to 1% thereafter. Similarly, the TSB Classic Plus Account gives you 5% on balances up to £2,000. What's more, that rate won't drop after 12 months.
Check out more top current accounts with loveMONEY
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