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

Savings account

While some banks and building societies continue to keep savers in the dark about how much they can expect their rate to rise, following this month’s Bank of England base rate rise to 0.5 per cent, new banks are launching top-paying accounts. 

Charter Savings Bank’s new Easy Access Issue 8 pays a top 1.32 per cent while Paragon Bank Limited Edition Easy Access 4 pays marginally less at 1.31 per cent. There are no withdrawal restrictions and neither rate is boosted by an initial bonus. 

On fixed rate bonds, the top one-year fixed-rate bond comes from Atom Bank at 1.95 per cent on an account you run on your smart phone or table.  Charter Savings Bank’s new internet-based one-year bond pays 1.81 per cent, and OakNorth Bank’s pays 1.8 per cent. 

On tax-free cash Isas, Shawbrook Bank has launched an easy-access deal at 1.1 per cent. Coventry Building Society currently pays 1.05 per cent, but this rate is set to rise to 1.3 per cent on December 1.

On fixed-rate cash Isas, the best rate for a one-year deal is 1.36 per cent from Charter Savings Bank or 1.35 per cent from Virgin Money and Leeds Building Society. 

- Retune your portfolio to profit from the interest rate rise

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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