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Coventry building society is offering a new poppy bond which raises cash for the Royal British Legion.
Good points
It pays a fixed rate of 3.25 per cent until 31 December 2014 while 0.05 per cent of the total funds invested in the bond will be handed over to the Poppy Appeal.
Bad points
The cash must be locked away until the bond closes at the end of 2014. If interest rates rise before then the 3.25 per cent could end up looking less attractive than it does today.
Conclusion
Since 2008 the Coventry has raised nearly £7m for the Royal British Legion through previous poppy bonds. The interest rate is fine as long as you're happy to have no access to your cash for more than two years. Call 0845 7665522 to apply.
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