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

Savings account

Banks and building societies are launching accounts paying top rates for new savers. 

Virgin Money’s Double Take E-Saver, available online only, pays 1.21 per cent. The rate on the new easy-access account puts it just behind the top rate of 1.25 per cent from Ulster Bank.

But bear in mind that the new Virgin Money account limits you to making just two withdrawals a year. 
Other top deals include Shawbrook Bank, Bank of Cyprus and RCI Bank all at 1.2 per cent

Skipton Building Society’s new Cash Isa Plus pays 1.02 per cent, putting it among the top payers on easy-access cash Isas. But the rate includes a 0.27 percentage point bonus payable for the first 12 months.

Virgin Money has also introduced a new version of its Defined Access Cash Isa at a top rate of 1.06 per cent. There is no bonus but you are restricted to making three withdrawals a year. If you make any more your rate tumbles to 0.25 per cent for the rest of the year.

The best deal on easy-access cash Isas with no bonus and no withdrawal restrictions comes from Paragon Bank at 1.05 per cent. 

On fixed rate cash Isas Virgin Money pays 1.3 per cent and Metro Bank 1.25 per cent, both fixed for one year. The top two-year deal is 1.51 per cent from Virgin Money or 1.5 per cent from BM Savings, where the deposit taker is Halifax.

The best deal on taxable fixed-rate bonds for one year is 1.95 per cent from Atom Bank followed by Oaknorth Bank and Family Building Society at 1.76 per cent. PCF Bank pays 1.81 per cent fixed for 18 months while for two years you can earn 2.1 per cent with Atom Bank or 2.05 per cent from Paragon Bank.

 

- 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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