As Remembrance Sunday approaches, Coventry Building Society has added two new accounts to its savings range in support of The Royal British Legion.
While the Poppy Fixed ISA (2) and the Poppy Bond (146) will both pay savers a rate of 1.70% AER, the society will donate 0.15% to The Royal British Legion, based on the balances invested in these accounts as at 31 December this year. The interest rates for these charity accounts are guaranteed to be fixed until 30th November 2022 and 31st December 2022 respectively.
Coventry Building Society has been offering Poppy accounts since 2008 and has donated over £17 million to the Royal British Legion as a result of money saved into them.
The Poppy Fixed ISA (2) will accept current and transfers of previous years’ ISA savings. And for savers who already have their ISAs sorted, Poppy Bond (146) can hold up to £250,000 of their savings. Accounts can be opened over the phone, online, by post or in branch with just £1.
Matthew Carter, Head of Savings and Mortgages at Coventry Building Society, said: “The Poppy accounts are a great way for people’s savings to make a difference to a worthwhile cause. So many people love to wear a poppy at this time of year and these accounts are another very popular way for people to do their bit with the reassurance they are getting a competitive return on their savings.
“The millions we donate go to the fantastic work of The Royal British Legion who provide life-long support to all of those in the Armed Forces community.”
An example of someone who benefits both from the returns on these new products and the work of the Royal British Legion is Commander Pritchard, who served in the armed forces for over 30 years.
During that time he served in many places around the world including Europe, South Africa and the Far East. Commander Pritchard has also worked as a volunteer for The Royal British Legion. Commander Pritchard said, “Having worked as a volunteer for The Royal British Legion, I have seen first-hand the fantastic support they give to veterans. The Coventry’s Poppy accounts are a great way to support the Legion’s work. Not only am I getting a good rate on my savings, I’m also supporting a worthy cause, so it’s a win-win."
Rachel Springall, Finance Expert at Moneyfacts.co.uk, said: “These popular Poppy accounts may well appeal to savers looking for a safe home for their cash with a trusted brand over the next few years, as well as attracting those hoping to secure a competitive interest rate and in the process, support the Royal British Legion.
“However, savers may need to be quick off the mark to take advantage as these Poppy accounts might not stay on the shelf for long. In fact, back in 2014, its three-year bond was available for just 12 days and last year’s five-year bond and ISA were withdrawn after just 16 days. Over the past five years, the Poppy accounts were available for 18 days on average – just over a fortnight.
“If savers have yet to utilise their annual ISA allowance, then they will find the Poppy ISA sits highly in its sector, just shy of the market leaders in fact. The ISA can accept both the current and transfers of previous years’ ISA savings too – ideal for those looking to move from a less than attractive rate and support a charity in the process. Unlike the bond version, the ISA also allows savers to access their pot, subject to an interest penalty and closure of the account – ideal for those who may want this flexibility.
“Since 2008, Coventry Building Society has donated over £17 million to the Royal British Legion thanks to the cash invested in Poppy accounts. Overall, if savers are content to lock their cash away until 2022 for a competitive interest rate, they too can help towards increasing the millions already donated, without giving away a penny of their own investment in the process.”
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.