Coventry Building Society is paving the way in the industry with an “unbeatable” savings account offering 4.85% interest.
This is the highest rate available across limited access savings accounts.
The new 4 Access Saver account accepts a maximum deposit of £250,000 and a minimum starting sum of just £1.
Customers are able to open and access an account through their branch, post, telephone, online or through its app.
Coventry Building Society members are able to choose to receive payments either monthly or yearly with the new account, with the ability to make up to four free withdrawals every year.
If savers wish to make a withdrawal beyond the limit, a charge equivalent to 50 days interest will be added on the amount taken out.
The financial institution also confirmed the account will keep the interest rate of 4.85% even if extra withdrawals are made.
Saving products manager at Coventry Building Society, Bethaney Cozens, explained why the new savings account would be beneficial.
She said: “Our new 4 Access Saver will give savers the best of both worlds – an unbeatable 4.85% rate and the flexibility to access savings up to four times a year without charge,” reports GBNews.
She added: “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.”
The announcement comes the day before the Bank of England’s (BoE) Monetary Policy Committee meeting to discuss the future of the base rate.
The current interest rate outlined by the BoE HAS plummeted to 4.75% with forecasts suggesting this could be cut numerous times throughout the year.
In recent years, UK savers have benefited from the interest rate rise to 5.25% in a bid to tackle inflation as they pocket higher returns. However, analysts warn this may come to end, which debt borrowers and mortgage holders may be happy about.
The head of bank analytics at Raisin, Jasmin Ehlert, has predicted the BoE cutting interest rates to 4.5% tomorrow.
She 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.
“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.”
