March 2018: What are the best savings account rates?

We round-up the best savings accounts for the year.

Cash Isa rates continue to edge up slowly as we approach the end of the tax year on April 5. 

Savers can put £20,000 into a cash Isa this tax year and pay no tax on the interest they earn.

Virgin Money has upped the rate on its one-year fixed rate cash Isa to a top 1.5 per cent.  The account is on offer online, through its branches or you can open it through the post. The best deal for two years is a slightly higher 1.67 per cent from Paragon Bank and Chartered Savings Bank followed by Virgin Money at 1.66 per cent. 

On easy-access cash Isas, Nationwide Loyalty Single Access Isa pays a top 1.4 per cent.  But it is only open to those who have been a member of the building society for at least 12 months and you are limited to making just one withdrawal a year from your account. The building society’s Single Access Isa, open to all, pays 1.3 per cent. 

For savers who want a straightforward easy-access cash Isa with no withdrawal restrictions, Virgin Money’s Easy Access Cash Isa issue 23 pays 1.21 per cent and Nottingham BS online Easy Access Isa 1.2 per cent. Paragon Bank’s Limited Edition Easy Access Cash Isa and Sainsbury’s Bank Cash Isa both pay 1.16 per cent. 

On taxable easy-access accounts ICICI Bank Hi-Save Bonus Saver currently pays a top 1.35 per cent. But the rate includes a 0.7 percentage point bonus payable until the end of January next year.    

Top accounts with no bonus include French-owned RCI Bank Freedom account at 1.3 per cent with no withdrawal restrictions. Virgin Money Double Take E-Saver 4 also pays 1.3 per cent but limits you to making just two withdrawals a calendar year. Ford Money Flexible Saver at 1.22 per cent and Paragon Bank Limited Edition Easy Access account at 1.21 per cent are also among the top payers. 

On taxable fixed-rate bonds, the best one-year rate comes from Investec Bank at 1.9 per cent. Elsewhere, Oaknorth Bank pays 1.82 per cent and Masthaven and PCF banks are offering 1.8 per cent. Metro Bank has upped its rate for new savers to 1.65 per cent, representing the top rate in the High Street.  

For 18 months you can fix at 1.95 per cent with Investec Bank or 1.9 per cent with Metro Bank, Masthaven or PCF Bank. 

The top two-year rates come from Swedish-owned Ikano Bank at 2.1 per cent and Oaknorth Bank at 2.09 per cent. 

How to beat inflation

To beat inflation, currently running at 3 per cent, compromises need to be made as all of the small number of regular savings accounts that pay more than inflation require savers to have a current account with the provider. Our sister publication Moneywise regularly keeps tabs on the savings market and has found there are six accounts that currently beat inflation.

-UK inflation: where’s it heading in the long term?

Keep up to date with all the latest personal finance news and investment tips by signing up to our newsletter. Email subscribers will also receive a free print copy of Money Observer magazine.

Subscribe to Money Observer magazine



Post new comment

The content of this field is kept private and will not be shown publicly.
By submitting this form, you accept the Mollom privacy policy.