Anger as Coventry cuts rates on savings accounts

COVENTRY Building Society is shaving the interest it pays to tens of thousands of savers from the start of next month.

The society says the move is a result of it offering lower mortgage rates to new customers, in turn forcing it to cut some savings rates. It insists the accounts impacted will continue to offer ‘excellent value’ when compared against competitors.

One reader who has money in the popular Poppy Isa account told The Mail on Sunday he was ‘disappointed’ to be told the interest rate would be cut from 1.25 to 1.15 per cent. Coventry makes a regular donation to forces charity The Royal British Legion based on all balances kept in Poppy. ‘I thought savings rates were on the up, not falling,’ he added.

Coventry says no saver impacted by the cuts will receive an interest rate lower than 1.15 per cent.

For the best rates for your savings and your cash Isa, see page 107.