In March, the Bank of England reduced base rate twice, by a total of 0.65%. It currently stands at 0.10%, the lowest it has ever been.
After the first reduction, we made the decision to reduce the rates on some of our accounts and this was communicated to members in March (new rates effective 10 April). Following the second reduction, we responded by reducing the rates on a different group of accounts and this was communicated in April (new rates effective 4, 5, 6, 7 & 26 May).
For most of those accounts included in 10 April reductions, we’ve now had to take the difficult decision to lower the interest rate for a second time since March to reflect the second base rate reduction and market changes.
Depending on which account you hold, changes will take effect on 8 - 10 July 2020 and we’ll contact you between 24 - 26 June 2020.
- If you have an email address registered with us, we’ll contact you by email.
- If you don’t have an email address registered with us, we’ll contact you by post.
If you have several accounts with us, we’ll contact you separately about each account if the rate is being reduced.
Yes – although this is another unwelcome rate reduction, it’s important to remember that we still offer good, long-term value compared to many other providers (open and closed issue products) in the market.
You can compare your account for yourself
You can see how our current range of savings accounts stack up against our competitors using the comparison tool.
It uses data from Moneyfacts so it’s completely independent.
Despite these reductions, our interest rates will continue to provide good value when compared to like-for-like products held by other providers, both closed issue and those available to open today.
It depends on the type of account you have with us:
- Fixed - Your account won’t be affected because the interest rate is set for an agreed length of time.
- Variable - Some of our variable rate savings accounts will be reduced by up to 0.75%.
Log in to Online Services (if you’re registered) and select your account. The interest rate is displayed on the ‘My transactions’ page.
All of our interest rates are also on our website. If a savings account is no longer available to new customers, it’s listed under ‘Closed accounts’.
You should regularly review your savings and look at your options. If you’re not happy with your new interest rate, you can:
- Transfer your money to another Coventry account
- Transfer your money to another provider (if your account is an ISA, you’ll need to ask your new provider to arrange an ‘ISA transfer’ in order to keep the tax-free status of your savings)
- Close your account.
You can close your account without notice or charge, even if it usually has notice or withdrawal restrictions.
For the following accounts, you’ll have until 7 August 2020:
- Regular Saver ISA
- 30 Day Notice
- Children’s Regular Saver
- One Year Variable Bond
For the Regular Savings Account, you’ll have until 8 August 2020
For the 30 Day Notice ISA (1) – (5), you’ll have until 9 August 2020
The charge-free period only applies to closures, not to partial withdrawals. After these dates, the usual conditions will apply.
We have accounts that offer better interest rates but on different terms. For example, you could get a better rate from one of our fixed rate products, but you need to be aware that you’ll be locking your money away for a period of time.
- Our two-year Fixed Rate ISA (113) and our two-year Fixed Bond (220) both offer 0.75%.
- And our Regular Saver (2) allows you to save up to £500 each month (new money only) and has an interest rate of 1.85% AER*/Gross p.a. You can access your money if you need to but there is a charge equal to 30 days’ interest. With a Regular Saver, you can only put in £500 each month, and no more.