Coventry cuts through confusing T&Cs

There is growing criticism of saving accounts that erode headline grabbing rates with ‘so-called’ restrictive terms and conditions.

A number of organisations promote high interest earning, easy access accounts. In practice, the actual rate drops significantly when customers withdraw their money, because they do not receive any interest for any month when a withdrawal is made.

“Coventry Building Society’s Online Saver account is different”, says Rachel Haworth, Head of Marketing at the Coventry. “It is only on the amount withdrawn that the customer does not earn interest for one month - the rest of the balance continues to earn our market leading rate of 6.51%.

“We want customers to know the difference this makes. If a customer does not make any withdrawal they will earn more with the Coventry than they will with any other easy access account – whether they have penalties or not. In our example, customers who have made three withdrawals are more than £50 better off with the Coventry than accounts that penalise the entire balance.

“Accounts which penalise customers a month’s interest on all of their money for withdrawing only part of it – technically as little as a £1 – are simply something we wouldn’t do at the Coventry.

“Our account is for disciplined savers who don’t expect to dip in and out of their savings, but do want the reassurance of easy access ‘just in case’. Customers gain peace of mind for having easy access and peace of mind that they are getting a great rate.”