Coventry Building Society has announced another interest rate increase across its range of its variable savings account.
This comes following the Bank of England’s 14th consecutive hike to the base rate which is now at 5.25 percent.
Banks and building societies are now passing on this interest rate rise to their customers, namely through savings products
Some 100 percent of Coventry Building Society’s members will be awarded the rate increase on August 14.
All balances are set to receive at least a 0.15 percent hike, with 50 percent of balances to be given a 0.25 percent rise.
The building society’s easy access accounts, including the easy access ISA, will increase by 0.25 percent to pay 3.10 percent.
Furthermore, the Regular Saver (5) and First Home Saver (2) will see rate hikes of 0.25 percent to pay Coventry Building Society’s highest variable rates of 5.05 percent
The financial institution’s children’s accounts will increase by 0.25 percent to pay a minimum of 4.15 percent.
With this boost, the Young Saver will pay 5.25 percent and the Junior ISA will pay a “market-leading” 4.95 percent.
Despite the base rate increase, Coventry Building Society confirmed it will be assisting homeowners.
All residential Fixed Rate mortgage deals will be reduced as of August 4, with some falling by 0.58 percent.
However, it should be noted that all tracker rates will increase in line with the Bank of England Base Rate on Sepember 1 and the Society’s Standard Variable Rate is under review.
Matthew Carter, the head of Savings at Coventry Building Society, broke down what customers should expect from these changes.
The savings expert explained: “We will be increasing rates on all our variable savings accounts.
“We’ve increased variable rates for our savers thirteen times since January 2022, and in the first six months of this year alone our members received £163million in extra interest than if we’d simply paid the market average.
“It’s good news for all of our savers, whether they are saving for their first home or entrusting us with their life savings.
“There’s also some positive news for borrowers, despite the rate rise, with our aim being to keep a close eye on the markets and return value to borrowers wherever we can.”
