Coventry Building Society launches Centenary Poppy Bond paying 2.4%

Limited edition bond pays decent rate and will provide a donation to The Royal British Legion charity

centenary poppy bond

Coventry Building Society has re-launched its popular Poppy Bond.

This limited edition savings account has been issued every year since 2008 to help raise money for The Royal British Legion.

So far the Poppy Bond range has helped raise £10 million for the charity, which provides care and support to members of the British armed forces, past and present, and their families.

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2014 Poppy Bond

As 2014 marks 100 years since the beginning of the First World War, Coventry has launched a Centenary Poppy Bond to honour the occasion.

It pays a fixed rate of 2.40% until 31st December 2017.

Coventry will donate 0.15% of the total balance deposited by savers into the Centenary Poppy Bond at the end of 31st December 2014 to The Royal British Legion. The donation is separate from the interest on the fixed rate bond.

The account can be opened with £1 and takes deposits of up to £250,000.

No withdrawals are permitted until maturity. Savers can choose to have interest paid either monthly or annually on 31st December.

You can apply for the account online, over the phone or in a branch.

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How it compares

Here's how the Centenary Poppy Bond compares to other three-year fixed rate savings bonds on the market right now.
Savings accountFixed termInterest rate (AER)Minimum depositAccess
Bank of Baroda Fixed DepositThree years2.50%£500Online
Shawbrook Bank Three-Year Fixed Rate Bond Issue 22Three years2.50%£5,000Online, post
State Bank of India Fixed Term DepositThree years2.50%£10,000Online
Coventry BS Centenary Poppy BondUntil 31/12/20172.40%£1Online, post, phone
Bank of London and the Middle East Premier Deposit AccountThree years2.40%£25,000Online
Aldermore Fixed Rate Savings AccountThree years2.35%£1,000Online, post, phone
United Trust Bank Three-Year BondThree yeras2.30%£500Online, post
Chelsea BS Fixed Rate E-BondUntil 31/10/20172.30%£1,000Online
Barnsley BS Fixed Rate Online BondUntil 31/10/20172.30%£1,000Online
Yorkshire Building Society Online Fixed Rate BondUntil 31/10/20172.30%£1,000Online
Tesco Bank Fixed Rate BondThree years2.30%£2,000Online
Virgin Money Fixed Rate E-Bond Issue 100Until 20th October 20172.25%£1Online
Skipton BS Fixed Rate E-BondThree years2.25%£500Online
Sainsbury's Bank Fixed Rate SaverThree years2.25%£5,000Online
Investec Fixed Term DepositThree years2.25%£25,000Online, post
Vanquis Bank High Yield Fixed Rate BondThree years2.20%£1,000Online

As you can see the Centenary Poppy Bond doesn't offer a market-leading rate compared to other three-year fixed rate bonds, but it is the best rate for people with smaller deposits.

The leading three-year fixed rate bonds pay 2.5% but some require a pretty hefty minimum deposit. The Bank of Baroda is asking for £500 minimum, Shawbrook Bank is asking for £5,000 while State Bank of India wants £10,000 to open an account.

The Centenary Poppy Bond only requires £1 to open and offers a slightly longer fixed rate compared to other three-year deals. This along with its charitable pledge might be more attractive to some savers.

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Where to find a better rate

If you are willing to lock your money up for longer you could get a better return.

At the moment you can get a top rate of 3.5% from FirstSave with its seven-year fixed rate bond, while Secure Trust is offering a top rate of 3.11% on its five-year fixed rate bond and Shawbrook Bank is offering 2.85% on its four-year fixed rate bond.

If you don't want to lock up your cash, some current accounts are offering decent rates of in-credit interest right now.

The Nationwide FlexDirect Account pays 5% on balances up to £2,500 for 12 months. The TSB Classic Plus Account also pays 5% but this rate is ongoing and applies to balances up to £2,000.

Elsewhere the Santander 123 Current Account offers to pay 3% on balances from £3,000 to £20,000.

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