Best buy easy-access savings rate launched by Coventry Building Society

New easy-to-access best-buy savings deal launched by Coventry Building Society: will it help fuel competition from rivals?

Coventry Building Society today launched a best-buy easy-access savings account that pays 0.55 percent.

This rate pushes it up as the outright top deal in the independent This is Money savings charts, above Marcus Bank, Cynergy Bank, Leeds Building Society and Saga, all of which offer 0.5 percent.

The account of Britain’s second largest mutual fund is a restricted access account – meaning it can withdraw money up to six times a year.

Top rate: Coventry Building Society has launched a high paying, easily accessible savings rate

Cash on the account is protected by the Financial Services Compensation Scheme and can only be accessed and managed online. Accounts can be opened with £1.

However, Daniel McDonald, senior product manager of savings products at Coventry, warns that the account is likely to become popular, suggesting it may not be around for long.

He said: ‘We expect it to be popular with savers, who want to take advantage of a market-leading interest rate and still have access to their money when needed.

“The account is ideal for savers who are looking for a place to store their savings or who are saving for something specific, who don’t want to lock their money away, but don’t expect to have constant access to it.”

The move could stimulate competition in the low-threshold market.

Rates on bread and butter bills have been in the doldrums for some time now.

Marcus was the main driver of easily accessible rates before the pandemic, with billions of pounds pouring into the British bank of Goldman Sachs as it has topped the best buy tables since its launch in the summer of 2018.

However, a deluge of deposits during the pandemic brought it close to exceeding legal limits, meaning it pulled the bill for a while.

Meanwhile, savers have seen an increase in better-paying fixed rates in recent months, with more providers competing in that area.

Average fixed rates rose monthly for the first time since October 2020, according to data from Moneyfacts earlier this week, as the pick grew to the highest number seen this year.

But despite that, rates on all accounts — easily accessible, flat rates and Isas — are well below pre-pandemic levels, meaning savers are struggling to find a return on their cash, especially with inflation above than 2 percent.