Coventry Building Society brings back its top-paying 1.5% Cash Isa
SAVERS looking to make the most of their hard-earned cash without the commitment should think about sticking their cash with Coventry Building Society.
The building society has brought back its top 1.5 per cent Cash Isa just two months after the deal was withdrawn.
The easy access Isa narrowly beats the previous best buy by Skipton Building Society, which rolled out its top 1.48 per cent Cash Isa as recently as last week.
Easy access accounts mean that you won’t be charged for withdrawing your cash, unlike fixed-rate accounts where you will be charged a penalty for taking money out before the term is up.
While fixed-rate accounts offer better rates, 1.50 per cent on your savings is the best you’ll get if you’re likely to need access to your cash.
Coventry Building Society first launched the market-leading 1.5 per cent Cash Isa in early March, only to drop it two weeks later.
It then rolled out a 1.47 per cent deal in April, but was overtaken by Skipton Building Society last week.
The new best buy allows you to make unlimited withdrawals, but keep in mind the account comes with a fixed bonus of 0.35 per cent until August 31 next year.
From September 1 in 2020, the interest rate will drop to 1.15 per cent, so before this you should consider moving your cash elsewhere.
The good news is that you only need £1 to be able to open the account, but this can only be done online.
Both new and existing customers are eligible for the account.
How do you switch Isa providers?
IF you’re in the market for a new, better paying Isa, there’s one thing you shouldn’t do.
Never withdraw money from your Isa account to put it into your new one – if you do it’ll lose its tax free benefits.
Instead you need to follow the simple transfer process.
Make sure that the new account you want to use accepts transfers (not all do) and then fill in the Isa transfer form with the new provider.
It will arrange for your savings to be transferred over, with the process taking no more than 15 working days.
And remember, you can only have one “active” Cash Isa per tax year.
Rachel Springall, finance expert of comparison site Moneyfacts, told The Sun: “There appears to be a welcome buzz in the easy access Isa market since the new-tax year began, which will be great news to savers who have yet to make use of their 2019/2020 Isa allowance.
“All of this tweaking clearly demonstrates how much the market can improve in just a few short weeks, so it is important that savers who are considering a best buy deal act fast in case the offer changes.
“As we experienced over the past two weeks, Skipton Building Society boosted its Isa to pay 1.48 per cent and Virgin Money upped its rate to 1.47 per cent, so there are many other good deals to choose from in easy access Isa market.
“It is fantastic to see building societies and challenger banks supporting savers with some top rates on easy access Isas.”
The new easy access cash Isa is not offering the highest rate we’ve seen recently – ICICI Bank offered 1.55 per cent back in January this year.
If you’re thinking about opening an Isa account then you should check out our round-up of the accounts with the best rates.
Meanwhile, we name and shame the worst savings accounts for your cash paying just 0.05 per cent.