Coventry launches 2 year tracker savings bond

Coventry Building Society is launching a new Bank of England Base Rate tracker bond that is guaranteed to pay at least 3.20% AER/Gross p.a until 30.09.12.

This innovative new savings bond offers the best of both worlds, a guaranteed minimum rate of 3.20% AER/Gross with a tracker to ensure that savers do not miss out on future base rate rises.  

Product highlights include;        

Guaranteed minimum rate of 3.20% AER/Gross p.a. until 30.09.12
Rate will track +2.20% above BBR (which means the rate will start to track once BBR rises above 1%)
There is no cap to the interest rate
Withdrawals subject to 90 days interest penalty

Savers can invest any amount from £1 to £250,000 with the option of monthly interest payments available for those customers wanting a regular income from their savings.

Colin Franklin, Sales and Marketing Director at Coventry Building Society said: "With rates at an all time low it has been a tough time for savers. The question is when will rates rise and by how much? Savers who are looking to commit to a bond will not want to miss out on the potential of rising rates. Our new Guaranteed Tracker Bond is ideal; not only does it offer a competitively priced guaranteed minimum rate of 3.20% AER/Gross but also savers will have the added peace of mind that as the BBR increases they won't lose out. Our Guaranteed Tracker Bond is available from as little as £1 and customers have the flexibility to make withdrawals if needed subject to 90 days penalty. We think this bond will be a real winner so savers need to act now to avoid missing out".