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Coventry BS offers unique family savings account

Coventry BS offers unique family savings account

Category: Savings

Updated: 01/05/2014
First Published: 29/11/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

In the vacuum left by the demise of the Child Trust Fund scheme (albeit a temporary one, until the newly-unveiled Children's ISA comes into force), Coventry Building Society has re-launched their unique Family Saver account.

Your Child Benefit is, in all likelihood, currently paid into your current account where it may earn little or no interest for you. The Coventry BS's Family Saver gives you a place where you can earn a top rate on your Child Benefit, whilst at the same time having no notice, online access to your money if you need to use it. You can also amalgamate any savings you have languishing in low paying savings accounts to give your family's easy access savings a single home.

Is it a No Notice account?

Occupying a position somewhere between a Children's savings account, a No Notice account and a Regular Savings account, the newly-launched Family Saver pays 3.00% Gross. When coupled with the ability to make unlimited withdrawals, this makes it a market-leading rate when compared to other No Notice accounts (the closest to it is the Nationwide MySave Online Plus which pays 2.99% Gross, but this account only allows one penalty-free withdrawal per year).

The only "catch" is that with Coventry BS's Family Saver you have to credit the account directly with the Child Benefit payment you receive from the Government each month. This regular funding requirement also makes the account much akin to a Regular Savings account.

Is it a Regular Savings account?

Against Regular Savings accounts the rate of 3.00% Gross is someway off the 5.00% that Skipton BS is currently offering. But then again, the Family Saver offers you much more flexibility than a standard Regular Savings account.

Not only does the account allow you to make unlimited withdrawals, there are also higher limits to the amount you can pay in (the maximum you can have in a Family Saver account is £250,000), whereas most Regular Savings accounts only allow you to make a single payment into the account each month and cap what you can pay in (typically at between £250-£500). When you consider that the four-weekly Child Benefit for two children is £134.80, this doesn't leave a lot if your parents and great aunt Ethel wish to pay in each month as well!

No, it's a Family Saver account!

So, all you need to do is have your Child Benefit paid to your Family Saver account and in return you'll get a reasonable rate, with no notice access to your money and the option for other family members to contribute – a unique way to put a little aside each month for your family's future, or to act as an emergency fund.

On the downside…

The introductory savings rate of 3.00% Gross is partly made up by a 1.00% bonus for 12 months. So you should be prepared to shop around in a year's time, if the rate you are receiving isn't competitive.

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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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