Banks are continuing to battle it out for savers' money, with some raising the rate they will pay on easy access accounts.

AA Savings, part of the Lloyds Banking Group, has upped the rate is pays on its Internet Extra (Issue 5). It now pays a top 3.2 per cent before tax (2.56 per cent after tax), including a 2.7 (2.16) percentage point bonus paid for the first 12 months.  

It makes it the top-paying easy access account, ahead of Coventry Building Society’s 3.15 per cent (2.52 per cent) on its Poppy Online Saver. 

ING Direct has raised the rate on its savings account, which is available over the telephone or internet. It now pays 3.1 per cent (2.48 per cent), or 3.06 per cent (2.45 per cent) if you want to take interest monthly.
 
BM Savings, also part of Lloyds Banking Group, has reintroduced its e-Saver account paying 2.75 per cent (2.2 per cent). There is no bonus on the account and interest is paid out monthly. You cannot have the interest added to your account.
 
Meanwhile, The Post Office, where the deposit-taker is Bank of Ireland, has removed the withdrawals restrictions on its Instant Saver account. It pays 2.1 per cent (1.68 per cent) including a 2 (1.6) percentage point bonus for a year and is available over the telephone, the internet or through branches. Previously savers were restricted to six withdrawals a year from the account.