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

Savings account

Savers need to be quick to catch the top deals – some are only on sale for a few days.

Harrods Bank upped the rate on its one-year fixed rate bond to 1.95 per cent at the start of October, but the bond was withdrawn from sale after ten days to be replaced by a new deal at a lower rate of 1.45 per cent. Kent Reliance paid 1.27 per cent on its Easy Access Issue 21 account but that too was on sale for just over two weeks. Its latest version, Issue 22, pays a lower 1.01 per cent.

The top easy-access rate comes from French-owned RCI Bank at 1.3 per cent. In this account your money comes under the French compensation scheme which gives you up to €100,000 (around £88,000) if the bank goes bust.

The best one-year fixed rate bond comes from Atom Bank at 1.8 per cent. You run this account through an app on your smart phone or tablet. Internet-based Charter Savings Bank pays a slightly lower 1.77 per cent. For two years Atom, Axis and Harrods banks all pay 2.05 per cent.

On tax-free cash Isas, the best easy-access rate comes from Virgin Money Defined Access Isa 16, launched last week at 1.11 per cent. You are limited to making three withdrawals a year from the account – if you make any more your rate drops to 0.25 per cent.

Leeds Building Society has launched another edition of its Online Access Isa also paying 1.11 per cent. This account runs until 31 January 2019 when your money is moved into an instant access Cash Isa maturity account.

Coventry Building Society pays 1.05 per cent on its Easy Access Isa Issue 6 with no withdrawal restrictions or other complicated terms and conditions.

On short-term fixed rate cash Isas, the top rates include 1.5 per cent from Yorkshire Bank fixed until January 2019 while Leeds Building Society, Virgin Money and Post Office (online only) all pay 1.35 per cent for a year. For two years Charter Savings Bank pays 1.65 per cent and Virgin Money and Yorkshire Building Society 1.55 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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