Savings rates are on the rise: here are the top paying accounts

Savings account

Banks and building societies continue to edge up rates, but savers need to be quick to grab the top deals - some are only on offer for a few days. 

Bank of Cyprus UK is a case in point. Last week the lender raised the rate on its Online Easy Saver to 1.3 per cent including a bonus for the first 12 months, but three days later cut it to 1.2 per cent.

The top deal comes from Ulster Bank at 1.25 per cent on its e-Savings account followed by Shawbrook Bank and French-owned RCI Bank both at 1.2 per cent.  None of these rates are boosted by a short-term bonus.

On fixed-rate bonds the best rate for one year is 1.85 per cent from Atom Bank followed by Shawbrook Bank at 1.8 per cent.  For two years you can earn 2.05 per cent available from Paragon and Shawbrook banks.

The best easy-access cash Isa rate is 1.05 per cent with Leeds Building Society Limited Edition Online Access Isa.  But the rate only lasts until October next year.  Virgin Money pays 1.01 per cent but limits you to three withdrawals a year.  Ford Money pays 1 per cent with no withdrawal restriction or bonus.

On fixed rate deals you can earn a tax-free 1.22 per cent from Bank of Cyprus UK or 1.2 per cent from Ford Money or Paragon Bank.

BM Savings, where the deposit taker is Halifax, has launched a top two-year fixed rate cash Isa at 1.5 per cent.

- Savers clueless about what their banks do with their money

To beat inflation 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 has found there are nine accounts that currently beat inflation.

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