Coventry Building Society has launched a market-leading savings account offering 4.85 per cent interest, making it the highest rate currently available for limited access savings.
The high street financial institution’s new 4 Access Saver account can be opened by customers with just £1, with a maximum deposit of £250,000. The account is available through multiple channels, including branch, post, telephone, online and through the building society’s app.
Savers can choose to receive interest payments either monthly or annually. Customers using the account can make up to four charge-free withdrawals every 12 months from the day of opening.
Any withdrawals beyond this limit will incur a charge equivalent to 50 days’ interest on the withdrawn amount. However, Coventry Building Society confirms the interest rate will remain unchanged at 4.85 per cent even if additional withdrawals are made.
This latest offering from the building society comes one day before the Bank of England’s next Monetary Policy Committee (MPC) meeting to discuss the future of the bare rate.
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Coventry Building Society has launched another savings account with a competitive interest rate
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Bethaney Cozens, the savings product manager at Coventry Building Society, broke down why customers should consider taking advantage of this new deal to bolster their finances.
She explained: “Our new 4 Access Saver will give savers the best of both worlds – an unbeatable 4.85 per cent rate and the flexibility to access savings up to four times a year without charge.”
“Unlike other limited access accounts on the market, our rate won’t reduce with additional withdrawals. There are no restrictions on how people choose to manage their account – whether online, via our app, over the phone, by post or a more personal experience in branch.”
British savers have benefited from the central bank’s decision-making in recent years, with the base rate rising to as much as 5.25 per cent in the Bank’s fight against inflation.
The Bank of England’s MPC will meet tomorrow to discuss interest rates
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While detrimental to debt borrowers and mortgage holders, savings account customers have been awarded with bolstered returns but analysts are sounding the alarm that this could be coming to an end.
As it stands, the Bank of England’s interest rate has fallen to 4.75 per cent but forecasts suggest this could be slashed multiple times throughout 2025 in a win for borrowers.
Jasmin Ehlert, the head of bank analytics at Raisin, has previously shared her prediction that the Bank of England will cut interest rates by 25 basis points to 4.5 per cent tomorrow (February 6).
On top of this, the finance expert has forecast that the base rate could drop to under four per cent by the end of the year in a move which would dramatically alter the savings market.
The anticipated cuts are supported by December’s unexpectedly low inflation data, along with concerns about economic stagnation and growing trade tensions with the US.
Ehlert said: “This would mark the third cut in this cycle, following a steady rate in December. While cutting rates too quickly presents risks due to inflationary pressures and strong wage growth, the unexpectedly low inflation data for December should provide enough justification for this move.
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Savers are looking for the best high interest rate deal GETTY “Additionally, concerns about economic stagnation and growing trade tensions, especially with the US, could further weaken growth, making the case for a rate cut even stronger.”
Given these market conditions, Raisin’s head of bank analytics is advising savers in the UK to act swiftly to secure current higher rates while competitive deals are still available.
She added: “The key for savers is to plan: determine how much of your savings you may need immediate access to, and how much can be locked away in fixed-term deposits to benefit from the current higher rates, which could decrease by as much as one percentage point this year.”
The Bank of England’s MPC will announce any changes to the UK’s tomorrow, February 6 2025, at 12pm.