Spotlight On: Coventry's Poppy Bond

Simon Read
Friday 05 November 2010 21:00 EDT
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The deal

Coventry Building Society has launched a short-term Poppy Bond, paying a fixed rate of 3.11 per cent until 31 December 2011.

The good points

It's all about raising cash for the Royal British Legion while offering decent interest. The society has raised £3.8m for the legion since 2008, and 0.1 per cent of money invested in the bond will be handed over.

The bad points

You can't get at your cash during the life of the bond, though interest can be paid monthly or annually.

Conclusion

Getting a decent rate on your savings while helping a cause close to your heart makes the Poppy Bond an attractive proposition at this time of year. The society has already launched a longer-term bond paying 3.5 per cent until the end of April 2013, which hands over 0.2 per cent of the amount invested to the Royal British Legion. The cash is used to help men and women who are currently serving, as well as ex-servicemen and women and their dependants. There are slightly better rates available but, taking into account the cash given to the charity, both the short- and longer-term deals are winners.

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