Account Summary - 1st Class Postal (4)

This account is no longer available to new investors.

1st Class Postal (4) is a savings account operated by post. It offers an outstanding rate of interest with 4 no-notice, penalty-free withdrawals each year.

Summary Box

Account name

1st Class Postal (4) 

What is the interest rate?

Effective from 29th January 2010
Annual Interest
Monthly Interest
AER*/gross p.a.
Gross p.a.
  £1,000 Plus  

The interest rates are variable.


Can Coventry Building Society change the interest rate?


What would the estimated balance be after months based on a deposit?


How do I open and manage my account?


Can I withdraw money?

You can make 4 no-notice, penalty-free withdrawals each year. The minimum withdrawal is £1,000. Simply complete a withdrawal slip and post it to us in the reply-paid envelope. On receipt we'll send you a cheque. Additional withdrawals can be made but will be subject to a charge equal to 50 days' interest on the amount you withdraw. Withdrawals of interest credited to the account will count as a withdrawal.

Additional Information



  • Interest is paid either annually on the anniversary of account opening or monthly on the last day of the month.

How to apply

  • You can apply in person in any of our branches, by telephone or request an application online, and we'll send you all the information you need. Then return your application with ID (if required) and arrange a transfer from your bank or building society account, another Coventry account, or alternatively post a cheque.
  • The minimum balance is £1,000. You can make additional deposits of at least £1,000 at any time up to a maximum balance held of £250,000 (see note 3 below).
  • You may only ever open one 1st Class Postal account, either solely or jointly. However many issues of the 1st Class Postal account there may be, you cannot open more than one.

Using your account

  • You manage your 1st Class Postal account exclusively by post. Once you've opened your account we'll send you all the stationery you need to operate your account.
  • And we'll provide you with an annual statement to make sure you keep up to date with your money.

Paying money in

  • Additional deposits of at least £1,000 can be made at any time.
  • Just post a cheque to us.
  • Contact your bank or building society to arrange a one-off transfer or regular payment.
  • Transfer money from another Coventry account.


1. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.

2. The minimum opening balance is also the minimum level at which the account should be operated. If the balance of an account falls below the minimum stated, and the Society has not exercised its right to close the account, the interest rate paid will be nominal. This nominal rate is our basic variable investment rate currently 0.10% AER/gross p.a., 0.08% net.

3. If the Society accepts investments in 1st Class Postal (4) which are above the £250,000 account maximum, the balance above £250,000 will earn a different variable interest rate. This is currently 0.50% AER/gross p.a., 0.40% net for annual interest, and 0.50% gross p.a., 0.50% AER, 0.40% net for monthly interest.

4. Interest is calculated gross, which means before tax has been deducted. Interest is usually paid net of tax (after tax has been deducted at the current rate of 20%). If you are taxed at the basic rate you should have nothing more to pay. If you are a higher rate tax payer you are likely to have to pay more tax.

Non-taxpayers can register to have their interest paid gross by completing a form R85 for each account and each account holder, (if both are entitled to have interest paid gross). Tax may be reclaimed from HM Revenue & Customs where the amount deducted exceeds an investor's liability to tax. If you are in any doubt about your tax position please contact your local tax office.

Coventry Building Society, Economic House, PO Box 9, High Street, Coventry CV1 5QN.