Coventry Building Society has announced its “competitive” one-year fixed-bond which pays an interest rate of 4.10 percent. Multiple high street banks and building societies have boosted their rates in recent months in an attempt to help their customers during the cost of living crisis. With inflation continuing to diminish returns on savings, this latest hike will be a boon for Coventry Building Society’s customers.

The financial institution’s fixed-bond account can be opened with a minimum deposit of just £1.

Accounts can be opened either online, by phone, by post or visiting one of Coventry Building Society’s branches.

After it is opened, the building society’s customers can invest any amount of money up to £250,000.

End-of-term or monthly interest payments are available for those wanting a regular income from their investment.

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Matthew Carter, the head of savings at Coventry Building Society, shared why this latest savings product will benefit its customers.

He explained: “Fixed bonds offer higher rates of returns than we’ve seen in a long time and add a layer of certainty to savings.

“With a minimum opening balance of just £1, our new fixed bond offers the best one-year rate of interest of any major savings provider and is ideal for those looking for a good return on their savings over the short term.”

Further information on the new one-year fixed-bond savings account can be on Coventry Building Society's website.

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In the last nine months, the Bank of England has increased the nation’s base rate multiple times to rein in inflation.

As it stands, the nation’s Consumer Price Index (CPI) rate of inflation is at 10.5 percent which is a slight drop from the month before.

While there are signs the rate is falling, inflation remains high and savers have seen returns on their accounts smaller as a result.

Therefore, the central bank’s intervention through the base rate has been welcomed by many banks and building societies.

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“Rate rises in the near future are largely priced into current fixed savings rates, and lower interest rate expectations further ahead – especially when compared to what was forecast in the autumn – are also increasingly baked in.

“It means we’ve already seen some of the best fixed rates withdrawn, and we may well see this trend continue.

The finance expert also shared guidance for those looking to lock into an account with a fixed rate. Ms Coles added: “If you’re planning to opt for a fixed-rate savings account, it may pay to do it sooner rather than later.

“The good news is that with the best two-year fix at 4.7 percent, and City forecasters estimating inflation will be around 5.2 percent this year, and lower next year, your savings could keep up with inflation.”