Coventry Building Society launches Easy Access and Better Buy Isa
- New Cash Isa pays 4.9% on deposits of £1 or more
- Up to four withdrawals are allowed every 12 months from opening.
Coventry Building Society has launched “easy access” cash Isa for new and existing customers paying a rate of 4.9 per cent.
Savers can open the account tax-free from £1 and deposit up to £20,000 for the current tax year.
The account allows four withdrawals every 12 months from the day the account is opened. Any withdrawal after this faces a charge equivalent to 50 days of interest.
Savers can choose between annual or monthly interest, which can be added to the account or paid into a designated account.
Top deal: Coventry Building Society’s easy-access cash Isa beats the rest by paying 4.9%
The account can only be opened and operated online and accepts transfers from other Isas.
Over the last few days there has been a lot of activity on the top of easy access cash Isa tables.
Leeds Building Society increased the interest rate on its Easy Access Cash Isa to 4.8 per cent on Thursday ahead of the Bank of England’s decision to suspend the base rate.
Now all eyes will be on easy access cash Isa rates to see if they rise to 5 per cent and catch up with non-tax free easy access accounts; Currently savers can earn a maximum of 5.1 percent in an easy-access account. without the duty free wrapping with Leeds.
Cash Isas saw record inflows of more than £3m in July, the Bank of England’s Money and Credit report revealed last month.
The sharp rise in savings rates has meant that many savers could face the prospect of exceeding their annual personal savings allowance and having to pay tax on their interest income.
Therefore, more savers have returned to sheltering their money in tax-free ISAS to keep tax liabilities to a minimum.
The PSA allows basic rate taxpayers to take home up to £1,000 in tax-free savings interest each year (£500 for higher rate taxpayers).
Read more here: Will you be hit with a tax bill on your savings as rates rise?
Betaney Cozens, of Coventry Building Society, said: “The tax bills facing many savers have encouraged the take-up of Isas.”
“We have opened almost as many new Isas so far this year than in the last two years combined, as Isas have become an increasingly popular option for members who want to maximize their tax-free savings allowances in a higher interest rate environment.