Coventry Building Society is introducing three cash based Individual Savings Accounts (ISAs) which will be available from Tuesday 6 April.

The Privilege ISA is being introduced as an exclusive product specifically for long standing members of Coventry Building Society. To qualify, customers will have been members (savers or borrowers) with the Society continuously for five years at the end of the tax year to which ISA relates. The launch rate on this mini-cash ISA, which complies with Government CAT standards, will be 6.50% AER/Gross per annum on all balances and comes with the guarantee that it will remain 1.00% AER/Gross per annum above the Bank of England Base Rate (currently 5.50%) until 5 April 2001. The Privilege ISA is an instant access, passbook based account and has a minimum opening balance of just £1.

The Square Deal ISA, which is also a mini-cash ISA complying with the Government’s CAT standards, is another ‘no frills’ instant access, pass book based account open to everyone whether an existing member of Coventry Building Society or not. The minimum opening balance is only £1 with interest paid annually. Balances of as little as £1 will attract a rate eof interest of 5.00% AER/Gross per annum. With rates rising to 5.50% AER/Gross per annum for balances of £3,000.

The TESSA Reward ISA is a stand alone account designed specifically for investors who have a maturing TESSA. The account is passbook based and will require a minimum opening balance of £500. Customers with maturing TESSAs from other financial institutions may also open an account on production of a valid maturity certificate. A flat interest rate of 6.50% AER/Gross per annum will apply to all balances of £500 and over, with an option to take interest annually or monthly.

Martin Ritchley, Chief Executive of the Coventry commented:

"It is important that our product range includes ISAs to enable our members to invest in the most tax efficient way and we believe that those products will be extremely popular.

"This has also given us the opportunity to offer our long standing members additional rewards on their savings through the Privilege ISA demonstrating once again that members benefit from belonging to Coventry Building Society. We have identified a clear need to offer our loyal members additional benefits on their investments. As we do with our borrowers through the Privilege Rate mortgage scheme and the Privilege ISA redresses the balance to give something back to our savers.

"Our mini-cash ISAs are simple, straightforward accounts and we see the introduction of these as a positive move for the small saver – to receive such attractive tax free rates of interest on balances from as little as £1 can only be good news. We welcome the Government CAT standards which reinforce our commitment as a building society to ensure our savers get a fair deal. We have therefore deliberately designed our mini-cash ISAs to comply with these standards."