Coventry Building Society has introduced a new savings product, the 'Sunny Day Saver 3', offering a 5% interest rate and a monthly prize draw. This limited-time account is available throughout September and allows savers to deposit up to £150 each month.
Savers can open the account with as little as £1 and are not obligated to make monthly deposits. However, to qualify for the monthly prize draws, individuals must add at least £10 to their account during that month. The draws, running from October 2026 to August 2027, will award ten cash prizes each month, with amounts ranging from £50 to £500. A larger prize draw will also take place for those who qualify for all 11 monthly draws, with prizes including a top award of £5,000.
At the conclusion of the 12-month term, funds will automatically be transferred to the building society's easy-access saver account, which currently offers a 2% interest rate.
Mike Mendham, head of savings at Coventry Building Society, highlighted the account's dual benefit. "Unlike Premium Bonds, where returns depend entirely on winning a prize, Sunny Day Saver offers the reassurance of earning interest on your savings while also providing the chance to win monthly cash prizes," he stated. He added that regular savers have the added incentive of being entered into a larger prize draw, offering "the best of both worlds."
Coventry Building Society is the second-largest building society in the UK, managing over £64 billion in assets. The new account's 5% rate compares to the current underlying return of 4.35% for Premium Bonds, which also offer monthly prizes. While the 5% rate on the Sunny Day Saver 3 is appealing, the maximum £150 monthly deposit would yield approximately £48 in interest over 12 months, translating to an effective annual return of around 2.65% when factoring in the maximum contribution. Other regular saver accounts, such as one offered by Santander, allow for larger monthly savings of up to £200 and offer rates as high as 8%.