Coventry Building Society has launched a new version of its Poppy Bond today which comes with a two per cent rate fixed until December 2020.
The fixed bond is also available as a cash Isa for the first time and Britain’s second biggest mutual will donate 0.15 per cent of total balances in the accounts as of the end of January 2018 to charity.
That being the Royal British Legion whose Poppy Appeal began this week, to which Coventry BS has donated £14.5million since 2008.
Poppy Appeal: Coventry BS has launched a three-year fix with a 2% rate – and it will donate 0.15% to the Royal British Legion
The rate is a three-and-a-bit year fix, which can be beaten in the independent This is Money best buy tables. At present, Rayan Bank offers a top 2.3 per cent rate to savers, followed by Ikano Bank at 2.21 per cent and Paragon Bank 2.2 per cent.
Of course, nothing from these accounts heads to a charity.
In the fixed cash Isa stakes, the Coventry bond is more competitive: only one other account beats it – a 2.2 per cent rate from Yorkshire Bank.
Claire Rowcliffe, director of fundraising at the Royal British Legion, said: ‘This longstanding partnership continues to deliver much needed help to serving and ex-serving members of Britain’s Armed Forces and their families.
‘It is a great relationship which supports many of our services, including our vital rehabilitation centres for injured servicemen and women.’
Withdrawals and closure prior to the maturity date are not permitted by Coventry Building Society – closures before maturity are subject to a 180 days’ interest charge.
It can be opened in branch, online or via the telephone.
Mark Parsons, chief executive of the Coventry, said: ‘Our Poppy savings accounts have proved incredibly popular.
‘We hope our highly competitive Poppy Fixed Isa and Poppy Bond will be just as well received for their great value, and the wonderful work they support.’
COVENTRY BS POPPY INDEX
In November 2011, it launched an eighteen month fixed-rate deal offering 3.55 per cent.
The following year, it had a two-year fixed rate paying 3.25 per cent.
In April 2013, it offered an easy-access tax-free rate of 2.6 per cent. It was so popular that it was pulled within two weeks.
Then, in the lead up to Remembrance Day, it launched two Poppy Bonds. One which offered either a 2.6 or 2.5 per cent rate, depending on the savers’ choice of donation to the charity, fixed for three and a half years.
In 2014, it offered a three year bond with a 2.4 per cent rate and in 2015, over the same period of time, a slightly lower rate of 2.35 per cent.
Then last year, it offered another three-year deal, this time with a measly 1.3 per cent rate – some 0.7 percentage points lower than what it has launched today.
THIS IS MONEY’S FIVE OF THE BEST SAVINGS DEALS