Coventry Building Society launches new 4.3% interest savings account with cash prizes | Personal Finance | Finance
Coventry Building Society has launched a new regular savings account with prizes to help people build their cash.
The new Sunny Day Saver (2) pays an interest rate of 4.3% AER and offers the chance to win 10 cash prizes every month. The account aims to encourage people to set aside small amounts of up to £150 each month. Joanne Forsyth, manager at Coventry Building Society’s Oxford Branch, said: “Saving for life’s rainy days is something many of us try to do – but it’s just as important to put something aside for the sunny ones too. Our Sunny Day Saver helps people build a small pot for those feel-good moments – whether it’s a weekend away, a treat for the family, or simply something that brings a bit of joy.”
The account will be available for a limited time in September and can be opened with as little as £1.
There’s no requirement to save every month, but for each month that at least £10 is added to the account, savers will qualify for a prize draw to win one of 10 cash prizes of up to £500.
Those who consistently save each month for 11 months will qualify for an additional prize draw of up to £5,000.
Based on the maximum £150 monthly contribution and the current 4.3% AER interest rate, the estimated account balance after 12 months would be £1,841.93, including £41.93 interest.
Savers must be aged 18 and over to open the account, and interest is paid annually and on the anniversary.
Ms Forsyth continued: “Sunny Day Saver gives people a chance to win monthly cash prizes and earn interest on their savings. For those who can save consistently each month, there’s an added incentive with entry into a larger prize draw.
“It’s a rewarding way to build healthy savings habits, with the reassurance that their money is growing even if they don’t win.”
Commenting on the deal, Rachel Springall, finance expert at Moneyfacts, said: “Savers looking to put some money aside towards any future goals will find the new Sunny Day Saver from Coventry Building Society a great choice.
“Not only does the account pay a competitive rate of interest, but savers will also find the monthly prize draw an enticing initiative. If the savings habit temporarily changes, savers can still be eligible for the draw, but those who are diligent enough to put money away each month could win a bigger prize pot.”
She added: “Regular savings accounts are an ideal choice for savers to build up financial resilience, and it can be incredibly beneficial to have an emergency fund set aside should any unexpected costs arise.”
What else is out there?
Principality Building Society is still topping the table for regular savers with an Annual Equivalent Rate (AER) of 7.5%. The account runs for six months, and interest is paid on maturity.
Savers can invest up to £200 per month, allowing the pot to grow to a total of £1,200, and withdrawals are not permitted until the account matures. So, while it may have a market-leading AER, its six-month term limits the total interest earned. With a maximum investment of £200 per month, savers will end up with £1,227.53, including £27.53 in interest.
Zopa offers a 7.1% AER over 12 months with a maximum limit of £300 per month, allowing savers to amass £3,600 in total savings. Interest is paid at the end of the term, with a full £3,600 deposit expected to earn around £137. This will bring the total balance to approximately £3,737. Savers are allowed to withdraw money from the Zopa savings account at any time without penalty
First Direct is just behind with a 7% AER over 12 months. The account allows a monthly deposit of £300, which can also total up to £3,600 in savings over a year. At the end of the term, First Direct says savers will amass around £3,736.50, including £136.50 in interest.
