Welcome to the Money Masterclass, a weekly showcase of the best new personal finance deals. Every Thursday, Moneyfacts.co.uk will give a run down of the finest new saving accounts, mortgage deals, credit cards, personal loans and more.
This week's focus is savings and mortgages.
Norwich & Peterborough Building Society
Norwich & Peterborough Building Society has launched its e-Saver account paying 2.80%. The rate includes a conditional bonus of 1.60%, which is payable once the account has been open for one year. The account is available to new customers and savers can invest up to £1m. No notice is required to make a withdrawal, but all transactions must be made to other accounts in the account holder's name.
Analysis: The launch of a new issue of the popular e-Saver account is a welcome addition to Norwich & Peterborough Building Society's range. Paying 2.80% including the bonus it is amongst the market leading no notice internet accounts. As the rate includes a large bonus, savers need to review the account after one year.
Coventry Building Society
Once again Coventry Building Society has launched its Poppy Bond in support of the Royal British Legion's Poppy Appeal. The society will donate 0.20% of the total balances in the bond to the Poppy Appeal. The bond has a three year term and pays 3.50%. A monthly interest option is available for savers looking for a regular income. Between £500 and £250,000 can be invested into the bond, with further additions permitted for seven days after the initial deposit. Access to funds is not allowed until the bond matures on 30th April 2013.
Analysis: It is good to see Coventry BS joining forces with the Royal British Legion again this year whilst also providing investors with a highly competitive medium term bond rate. Following the recent austerity cuts announced by the government, investors may be even more tempted to support the Poppy Appeal this year especially as yet again they will benefit from one of the market leading rates. As with many bonds no access is permitted during the term so investors will need to be certain they can commit funds for the full term.
Chelsea Building Society
Chelsea Building Society has continued its trend of offering competitive mortgages with the launch of a market leading three year fixed rate deal. Borrowers with a 25% deposit are being offered a rate of 3.29%, subject to a £995 fee. The mortgage offers incentives of free valuation and legal fees.
Analysis: The launch of this market leading three year fixed rate deal from Coventry Building Society complements its competitive range. The rate of 3.29% enters the market in line with the current lowest rate available at 75%, but offers a much lower fee of £995. With incentives of a free valuation and for remortgages free legal fees, this product provides excellent value for money for those opting for a three year fixed rate mortgage.
Borrowers looking to take advantage of the current low base rate may be tempted by the new tracker deal from HSBC. The lender is offering a deal of 1.79% above base rate (currently 2.29%) for the term of the mortgage, which is available to borrowers with a 40% deposit. The deal is subject to just a £99 fee and is the lowest rate term tracker deal on the market. There is no exit penalty, so borrowers can leave the deal at any time.
Analysis: The new 2.29% variable tracker rate for term remains head and shoulders above its peers, with a rate that is 0.06% better than any other variable rate for term, and a lower fee to boot. The only drawbacks to this product are that borrowers will have to pay their own valuation fee, and the low loan-to-value limit of 60%, which will preclude many borrowers from being eligible.
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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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