Coventry Building Society offers a new 6.75% interest savings account for loyal members, amidst UK’s changing tax landscape, stock market outflows, and a recovering housing market.
Coventry Building Society has launched a new regular savings account with a 6.75% interest rate, available exclusively to its members who have been part of the society since at least January 1, 2023. This loyalty regular saver account allows for deposits up to £250 per month and offers the flexibility of unlimited deposits over the year. However, withdrawals come with a cost equal to 30 days’ interest on the amount withdrawn. If not eligible for this offer, customers can opt for a regular saver account with a 5.00% interest rate. After a year, the loyalty account transitions to a variable-rate easy access saver, offering a 3.10% rate.
In another financial insight, the UK tax landscape is facing significant changes with tax allowance freezes, posing challenges for many taxpayers. The focus is on strategic utilization of existing allowances and tax-efficient investments like pensions and ISAs to mitigate the impact of these freezes.
Additionally, the London stock market experienced a drastic £14 billion outflow from UK equities last year, signaling potential challenges for the economy. Experts cite reasons such as Brexit uncertainties and political instability, with suggestions for policy interventions to support domestic investments.
The UK housing market, however, is showing signs of recovery, with a surge in agreed sales and mortgage approvals in early 2024, indicating growing confidence and activity in the property sector.
Moreover, a trend among older investors leaning towards growth and technology investments has emerged. Funds like Fundsmith Equity and technology companies such as Microsoft and Apple are becoming popular choices, reflecting a shift from traditional, safer investments to more risk-oriented options in retirement portfolios.
These developments across different financial sectors highlight a dynamic landscape that encompasses new opportunities, emerging challenges, and shifts in investment behaviors in the UK.
