Coventry Building Society ISA Review 2021

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.

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.

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.

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.