The new Poppy ISA pays a competitive fixed rate of 2 per cent for savers willing to tie up their money until November 30, 2020. Just Yorkshire Bank tops the rate, offering 2.2 per cent.
Popular Poppy Fund relaunched
The society has also relaunched its popular Poppy Fund - a fixed-rate savings bond paying 2 per cent AER until December 31, 2020. There are better rates on offer from Rayan Bank paying 2.3 per cent and Ikano Bank 2.21 per cent but neither accounts benefit a charity. Withdrawals and closure before the maturity date aren't allowed.
Donations to The Royal British Legion
Coventry – which has raised more than £14.5 million for the charity since 2008 - will make a donation to The Royal British Legion equal to 0.15% of the total balances invested in both the Poppy Bond and Poppy Fixed ISA on January 31, 2018.
Savings expert Rachel Springall at Moneyfacts says: “The Coventry BS Poppy bond and ISA provide savers with a choice to get not only a reasonable return, but also gives them a good feeling of helping the poppy appeal. The bond return is much higher than the previous issue too, as in 2016 savers would have earned just 1.25% on the bond over a three-year fixed period, plus, there wasn’t an ISA to choose from either.
“Whilst it is true that better returns can be gained elsewhere in the market if savers search the best buys, the main pull for this deal is the opportunity to help towards a worthy cause.”
The accounts can be opened in branch, by calling 0800 121 8899 or online.