Coventry Building Society's eNotice variable rate, online savings account guarantees to pay at least 3.05 per cent until 31 December 2011.
The good points
This is not a fixed-rate deal, it's variable, so if rates rise then the returns should climb. There's also no long-term tie, you can take cash out with 30 days notice.
The bad points
The rate includes an introductory bonus which, when removed, makes the account look less attractive. The account is only available online. The minimum amount you can deposit is £1,000.
A savings account without an introductory bonus is a rarity these days but at least the Coventry's offering keeps the bonus to a minimum. At 0.5 per cent, it's at least half that paid by other savings institutions which means that when it's removed, the account shouldn't be paying a paltry interest rate, as happens elsewhere. Even so, anyone tempted to open an eNotice account needs to keep a close eye on changing rates and move to a better deal if one comes up.