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Thread: Coventry Building Society

  1. #1
    Junior Member chapman
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    Coventry Building Society

    I have just had a letter from Coventry Building Society saying that the rate on their Easy Access ISA is to be reduced to 1.15%, from an already low 1.25%, on 3 January 2019. This account used to pay 1.40%. They say the new rate is competitive and invite me to use their comparison tool which uses data from Moneyfacts. I have done this - their own tool shows that 36 accounts pay more!!!

    This is a rally cynical move. They know that it is not always easy to switch an ISA and that we are trapped. I have used this year's ISA allowance on a fixed rate ISA which is no longer open for deposits. I do not have another ISA which I can switch my Coventry account to. If I close the account I loose the benefit of my ISA allowance.

    As soon as 6 April comes I shall open a better Easy Access ISA and switch all my funds from Coventry. However, they will benefit from their low interest rate for 3 months.

    Coventry used to be one of the better Building Societies. No so now.

  2. #2
    Expert planteria will become famous soon enough
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    it does seem a bit miserable of them, but my main thought is that i wouldn't bother with CashISAs with rates so low. i've only used S&SISAs for years.

  3. #3
    Member croz01
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    Just transfer your ISA to another provider. It doesn't matter that you've used your full allowance this year or that you don't have another ISA you can transfer it into - whoever you choose will open a new account for you.

  4. #4
    Junior Member chapman
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    Quote Originally Posted by croz01 View Post
    Just transfer your ISA to another provider. It doesn't matter that you've used your full allowance this year or that you don't have another ISA you can transfer it into - whoever you choose will open a new account for you.
    Yes, thanks for your reply. I hadn't realised that I could do that and, to be fair to Coventry Building Society, when I complained to them about the rate reduction they took the trouble to tell me how to transfer my ISA.

    I have now done it!

  5. #5
    Expert planteria will become famous soon enough
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    good.. where did you transfer it to? if Cash, what rate?

  6. #6
    Junior Member chapman
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    Quote Originally Posted by planteria View Post
    good.. where did you transfer it to? if Cash, what rate?
    Part to Charter Savings Bank, 5 year fixed rate, 2.26% - withdrawals are allowed, subject to 270 days' loss of interest, which is good if interest rates should soar! Remainder to Paragon Bank, easy access, 1.35%.

  7. #7
    Expert planteria will become famous soon enough
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    interesting stuff. i would have thought that rates will have moved up within 5 years, but at least you are getting something for your money in the interim. can't help thinking i'd rather have shares though, perhaps in a company that pays a dividend.

  8. #8
    Junior Member chapman
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    Quote Originally Posted by planteria View Post
    interesting stuff. i would have thought that rates will have moved up within 5 years, but at least you are getting something for your money in the interim. can't help thinking i'd rather have shares though, perhaps in a company that pays a dividend.
    Yes, I agree that stocks and shares are the way to go as a long term plan for many people. I'm a bit risk averse anyway and have had a couple of bad experiences in the past with S&S investments. At the moment I need to know that my savings are safe and that I can have access to them if needed, so cash is best for me.
    planteria likes this.


 

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