‘Attractive option’ Savers can get ‘competitive’ interest rates on new savings accounts

Inflation: Experts outline the impact on savings and investments

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Customers will be able to choose from four ISAs in total depending on their savings goals. While its one year account pays an attractive 1.5 percent interest, its long term options offer two percent.

There is an account for people who want to save for one, two, three or four years.

All four fixed rate ISAs can be opened with just £1 whether that’s online, by phone, or in branch.

Matthew Carter, head of savings at Coventry Building Society, said: “Supporting our savers is a key part of the Society’s purpose, so we’re delighted to be able offer a range of some of the market’s top rate paying ISA accounts.

“Many people will be searching for the best rates they can find, suiting their individual saving needs with the peace of mind that a fixed rate provides, so we expect these new ISA products will be very popular.

“ISAs are still an attractive option for those savers wanting to earn interest tax-free that doesn’t count towards Personal Savings Allowances, and of course, they have the ability to save up to this year’s ISA allowance in tax-free savings.

“We’ve also made it as straightforward as possible for people to open an ISA account either in branch, over the phone, online or by post – and that’s why Coventry Building Society has ranked first place for ease of opening a new account or transferring an existing ISA in a recent external benchmarking survey conducted among 30,000 people.”

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The new set of four ISAs are:

Short term
Fixed rate ISA (170) paying 1.50 percent tax-free fixed until 30.09.2023

Medium term
Fixed rate ISA (171) paying 1.75 percent tax-free fixed until 30.09.2024
Fixed rate ISA (172) paying 1.85 percent tax-free fixed until 30.09.2025

Long term
Fixed rate ISA (173) paying 2.00 percent tax-free fixed until 30.09.2026.

ISAs can be play a significant part in someone’s savings strategy.

There is a limit to how much money someone can put into an ISA in each tax year, which is currently £20,000 for 2022.

Jason Hollands, managing director at investment platform Bestinvest recently told Express.co.uk that savers should consider investing in ISAs and pensions.

He said: “Pensions are certainly a good place to start when looking to save tax-efficiently, but what’s more important is to have some sort of long-term savings strategy, especially for younger workers.”

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Mr Hollands continued: “At times of financial stress and uncertainty, as we are experiencing currently, it is easy to become very risk averse.

“But with inflation set to surge above its current levels around 6.2 percent, one thing is certain – that cash in savings accounts is losing value rapidly.

“Apportioning a certain amount of one’s savings into investments has been shown by historic evidence to reap rewards over the long term, preferably at least 10 years.

“And regular monthly contributions, whether into a pension or an ISA, work to ride out stock market volatility.”

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