rtmark
LearnBonds UK

Coventry Building Society ISA Review 2020

Coventry Building Society is a renowned financial services provider in the UK. We highlight some of the ISAs maintained on the platform and everything else you need to know about the society here
Kane Pepi
Author: Kane Pepi

Last Updated: March 17, 2020

Coventry Building Society LogoAre you looking to start putting some money to one side at the end of each month with the view of saving for the future? If so, you’ll no doubt know that a number of options are currently at your disposal. However, if you want to invest in a UK financial product that carries virtually no risk, then your best option might be to go with an ISA. With so many providers now in the market, how do you know which one to choose?

Well, if you’re thinking about going with Coventry Building Society, or you simply want to find out what ISAs they currently have on offer, then be sure to read our in-depth Coventry Building Society ISA Review. We cover everything that you need to know, such as how much each ISA pays, whether you need to lock the money away for a set period of time, and whether the ISA comes with any risks.

Although the 2019/20 ISA allowance allows you to place £20,000 into your ISA, some ISAs come with lower limits. For example, a Junior ISA only allows you to deposit £4,368 per year, meaning that you’ll need to put the balance into a different ISA.

Pros and cons of Coventry Building Society ISAs

The Pros

  • 4 different ISAs to choose from
  • All ISAs backed by the FSCS – savings covered up to the first £85,000
  • Most accounts can be opened online
  • Usually get started from just £1
  • One of the most competitive Junior ISAs in the market at 3.60% AER

The Cons

  • Does not offer Stocks and shares ISAs, Lifetime ISAs, or Innovative Finance ISAs

Coventry Building Society ISAs: What ISAs are offered?

Coventry Building Society logo

First and foremost, it is a shame that Coventry Building Society specializes exclusively in Cash ISAs. As a result, you will not be able to get your hands on a Stocks and Shares ISA, Lifetime ISA, or Innovative Finance ISA. Nevertheless, if it is a Cash ISA that you are after, then you’ll have four different varieties to choose from.

Here’s a breakdown of what’s on offer at Coventry Buiding Society.

1. Limited Access ISA -1.46%% AER per year

If you are looking for the highest paying Cash ISA available at Coventry Building Society, then this comes in the form of its Limited Access ISA. In a nutshell, the ISA pays an annual AER of 1.46%. Although the rate is variable – meaning that it can change at any given time, the 1.46% AER rate is fixed until 31st January 2021. When it comes to receiving the interest, you have the choice of having this paid monthly or annually.

A further benefit to opting for the Limited Access ISA is that you can transfer-in existing ISA funds that you are holding elsewhere. However, the ISA also comes with a slight pit-full. By this, we mean that you are only permitted to make up to three withdrawals per year. If you decide that you need to access your money once the three withdrawals have been made, you will lose 50 days’ worth of interest.

In terms of the fundamentals, you can get started with an investment of just £1, all the way up to the 2019/20 maximum of £20,000. If you like the sound of this particular ISA, you can easily open an account online in a matter of minutes. You can also get started in a branch, or over the telephone.

Key Points:

✔️ 1.46% % AER interest per year

✔️ Only three withdrawals per year

✔️ Your fourth annual withdrawal onwards will be charged at 50 days’ worth of interest

✔️ Get started from just £1

✔️ Open an account online, over the phone, or in a branch

✔️ No fees for transferring existing ISAs in

2. Easy Access ISA - 1.15% AER per year

If you think that three withdrawals per year is too restrictive for your individual needs, and thus, you want year-long flexibility in accessing your funds, then you might need to consider the Easy Access ISA. Unlike the Limited Access ISA, the Easy Access ISA permits an unlimited amount of withdrawals without any financial penalties being imposed. This is great if you want the security of being able to access your funds in times of need.

On the other hand – and as is the case with the vast majority of Easy Access ISAs in the UK market, although you will benefit from frictionless withdrawals, you will at the same suffer from a lower rate of interest. In fact, instead of getting the 1.46% that comes with the Limited Access ISA, you’ll only get 1.15% AER. We should also note that this rate is variable, so it could go up or down at any point.

When it comes to the fine points, you can get started with just £1, which is great. Moreover, you can open your account online in minutes, via the phone, or within your local branch. Finally, previous years’ transfers are allowed, and all of your tax-free interest will be paid out annually.

Key Points:

✔️ Pays 1.15% AER per year

✔️ The interest rate is variable

✔️ Get started with just £1

✔️ Access your money at any time – no penalties whatsoever

✔️ Protected by the FSCS

✔️ Open an account online, over the phone, or in a branch

3. Junior Cash ISA - 3.60% AER per year

As we briefly noted in our introduction, Coventry Building Society is now offering one of the most competitive Junior ISAs in the UK. With an AER of 3.60%, this is well worth considering. However, you need to be extra careful with Junior ISAs, as in the vast majority of cases, the funds will be locked away until your child turns 18.

First and foremost, the 3.60% AER rate is variable. As you now know, this can change at any time. As a result, while the rate is super competitive right now, this might not always be the case. Nevertheless, the interest is tax-free, and paid out on an annual basis. While you can get started from just £1, you need to remember that the maximum annual allowance is capped at £4,368. This is the same for all Junior ISAs in the UK, not just Coventry Building Society.

Now for the important part – withdrawing the funds. You will not under any circumstances be able to touch the funds. On the contrary, you and your child can only do this when they turn 18. However, you do have the option of transferring your Coventry Building Society ISA to another Junior ISA at any time. If you do, you will need to transfer out the entire balance.

Key Points:

✔️ Super-competitive 3.60% AER interest per year

✔️ Interest rate is variable, so it might not always be this competitive

✔️ Interest is paid annually

✔️ Maximum annual allowance is capped at £4,368

✔️ FSCS protected

✔️ No withdrawals before the child’s 18th birthday – but you can transfer to another provider

4. Additional Allowance ISA - 1.20% AER per year

The final ISA product available at Coventry Building Society is that of its Additional Allowance ISA. In a nutshell, this particular ISA is only available to those that have a deceased partner (including civil partner) that previously held an ISA at the institution. If they did, you will earn 1.20 AER% per year for as long as you keep the ISA open.

The interest rate is once again variable, meaning that there is no knowing how long it will remain at its somewhat competitive 1.20% AER. In terms of withdrawals, the good news is that the Additional Allowance ISA at Coventry Building Society falls within the remit of an easy access account.

As such, you can request a withdrawal at any time. However, this does need to be in the form of a cheque. Alternatively, you can also transfer the funds to another ISA – either at Coventry Building Society or another provider. Furthermore, it is perfectly fine to hold the Additional Allowance ISA alongside another ISA at Coventry Building Society.

Key Points:

✔️ Pays 1.20% AER interest per year

✔️ Only available if your deceased partner held an ISA at Coventry Building Society

✔️ You can hold other ISAs alongside the Additional Allowance ISA

✔️ Easy access account – although all withdrawals must be made via cheque

✔️ Free to transfer the funds to another ISA

Is a Coventry Building Society ISA safe?

All of the four ISAs available at Coventry Building Society fall under the umbrella of a standard Cash ISA. As a result, your savings will always be protected by the Financial Services Compensation Scheme (FSCS). This means that if Coventry Building Society ran into financial trouble, your funds would be 100% safe – up to the first £85,000.

FSCS logo with the "YOUR SAVINGS ARE PROTECTED" mantra on Coventry buiding society website

Take note, the £85,000 figure is based on all of your savings at the building society, not per account. As such, if you have more than this tied up, anything over £85,000 won’t be covered.

How much can I invest into my Coventry Building Society ISA per year?

The limits imposed by the Coventry Building Society fall in-line with the restrictions put in place by the UK government. Moreover, this is reviewed on a year-by-year basis, so in theory, it is likely to change next year. Nevertheless, your 2019/20 annual allowance amounts to £20,000 in total.

Screengrab of Coventry Building Society ISAs page

You can place this across multiple Cash ISAs if you prefer. For example, there nothing wrong with putting £10,000 into the Limited Access ISA, and the remaining £10,000 into the Easy Access ISA. On the other hand, some ISAs actually come with lower limits. For example, the Junior ISA only permits an annual investment of £4,368. Once again, this is dictated by the UK government, not Coventry Building Society.

FAQs

How do I open a Coventry Building Society ISA?

You can open an account online, in a branch, or over the telephone.

Do I need to have an account with Coventry Building Society to open an ISA?

You don't need to have an account to open an ISA with Coventry Building Society. However, when you apply for the ISA itself, an account will be opened for you.

Is a Coventry Building Society ISA safe?

Yes, as all of the ISAs offered by Coventry Building Society are Cash ISAs, your funds are protected by the FSCS. This means that everything up to the first £85,000 is 100% protected.

ISA
ABCDEFGHIJKLMNOPQRSTUVWXYZ#
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Kane Pepi

Kane holds academic qualifications in the finance and financial investigation fields. With a passion for all-things finance, he currently writes for a number of online publications.