Spotlight: Coventry BS 1st Class Postal Account

Another week, another new savings account: Coventry Building Society is back at the top of the easy access, best-buy tables following the launch of its 1st Class Postal Account, which is paying 3.3 per cent.

There are, however, a few catches you need to be aware of. The minimum investment is £1,000 and, although additional deposits are permitted, you must pay in at least £1,000 each time.

Up to four penalty-free withdrawals – a minimum of £1,000 each time – are allowed per year. If you make more than that in any 12-month period you will be charged 50 days' interest on that amount.

Only one account is available per customer either in sole or joint names and, as a postal account, it is opened and serviced through the post only – any money withdrawn is paid via cheque.

The maximum investment permitted is £250,000 but, under the Financial Services Compensation Scheme guidelines, it is not recommended to hold more than £50,000 in one institution per person.