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Coventry tie up benefits Stroud & Swindon members

Coventry tie up benefits Stroud & Swindon members

Category: Banking

Updated: 23/03/2010
First Published: 23/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Coventry Building Society has reached an agreement to merge with Stroud & Swindon Building Society.

The coming together of the UK's third and eleventh largest building societies is expected to be effective from 1 September 2010 and should see Stroud & Swindon members enjoy some immediate financial benefits.

Around 167,000 Stroud & Swindon savers will see their interest rates improve to match equivalent products offered by Coventry.

Similarly, borrowers currently paying or linked to Stroud & Swindon's residential Standard Variable Rate (SVR) will see their rate drop from 5.99% to Coventry's lower SVR of 4.74%.

"Today's announcement is excellent news for Stroud & Swindon members who have the opportunity to join one of the UK's strongest and most profitable building societies," said John Sutherland, chief executive of Stroud & Swindon Building Society.

"In considering a number of options, we believe that Coventry Building Society's commitment to long term member value, fairness, strategic prudence and local communities, provides Stroud & Swindon members with the best possible future. We strongly recommend Stroud & Swindon members to vote in favour of the merger."

Eligible members of Stroud & Swindon will be asked to vote on the proposed merger at a Special General Meeting expected to be held on 16 June 2010.

Members with money in both societies will retain separate maximum £50,000 depositor protection (per individual) under the Financial Services Compensation Scheme until 30 December 2010.

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