New £20,000 Isa allowance – where to find the best savings rates


French-owned RCI Bank has upped the rate on its easy-access online Freedom account to 1.2 per cent for both new and existing savers. 

It puts it just behind Ulster Bank, which pays 1.25 per cent on its e-Savings account. 

With the Ulster Bank account savers are covered up to £85,000 if the bank runs into trouble by the Financial Services Compensation Scheme. With RCI Bank you have €100,000 (around £88,000) under the equivalent French scheme.

Other top online deals include Bank of Cyprus at 1.15 per cent – including a bonus for the first year, Shawbrook Bank at 1.05 per cent and Ford Money at 1.07 per cent.  

On fixed-rate bonds the top rate for one year is 1.85 per cent from Harrods Bank. OakNorth Bank pays 1.76 per cent and Shawbrook, Harrods and Atom banks 1.75 per cent. 

Whereas, on tax-free cash Isas best rates come from Ford Money at 1 per cent for both new and existing savers. Virgin Money pays 1.01 per cent but limits you to three withdrawals a year.  

The top one-year fixed cash Isa rate is Bank of Cyprus at 1.22 per cent followed by Charter Savings Bank pays 1.21 per cent and Paragon Bank at 1.2 per cent.  
For two years Charter Savings Bank pays a top 1.37 per cent followed by Bank of Cyprus at 1.34 per cent along with Virgin Money, Yorkshire Building Society and Progressive Building Society all at 1.3 per cent.

- National Savings and Investments launches market-leading 2.2 savings bonds

How to beat inflation

To beat inflation, currently running at 2.6 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 has found there are nine accounts that currently beat inflation.

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