(PRWEB UK) 25 January 2013
Coventry Building Society is increasing the rates on its existing variable cash ISAs to 2.50% AER. The increase, which will benefit c250,000 members, takes effect from 6 April 2013.
The announcement bucks the trend to reduce savings rates that has coincided with availability of cheaper funding, including that provided by the Funding for Lending Scheme.
Colin Franklin, Sales and Marketing Director at Coventry said, “The benefit to borrowers of cheap funding is clear. However, as a mutual building society, our aim is to ensure that all our members benefit. Increasing our cash ISA rate, which is the starting point for many peoples’ long term savings, is the clearest way we can do this.”
“Our track record on ISAs is already very good. Our 60 Day Notice ISA has been a ‘best buy’ for over 40 weeks, and our Junior ISA has been market-leading since its launch last April. Now we are going further.”
“By increasing the rate on all existing variable cash ISA s to 2.50%, we are helping the savings of many thousands of members to work a little harder, and sharing a benefit that up to now has been skewed towards borrowers. From 6th April, none of Coventry’s quarter of a million ISA customers will earn less than 2.50% AER – which is the best ‘easy access’ variable cash ISA currently available.”
“Not that we are forgetting our mortgage members - we will continue to use the funding we can access to help them too. However our record in helping homeowners is second to none. Coventry became a top ten lender during the credit crisis and in the last 2 years has accounted for over 20% of net lending in the UK¹. In fact in the first half of 2012 we achieved 45% of net lending in the UK²
“However, it is about time that organisations recognised the plight of savers, and as responsible and member focused financial services institution we are proud to take a lead where we can.”
Please read accompanying notes
Notes to Editors
¹ 1 July 2010 – 30 June 2012 [base data: Bank of England]
² 2012 full year results will be announced in March 2013.
- The new rate will apply to variable easy access cash ISAs from 6 April 2013
- Members who have an existing variable easy access cash ISA with Coventry Building Society will be able to transfer ISA balances held in other organisations to Coventry prior to 6 April 2013
- Members who have other ISAs (e.g. Fixed Rate or Notice accounts) with Coventry Building Society will be able to transfer ISA balances to the variable cash ISA from 6 April 2013
- New ISA customers will be able to open a cash ISA using their annual 2012/2013 subscription only.
- Coventry Building Society is the third largest building society in the UK with assets exceeding £25.1 billion.