With interest rates slowly back on the rise, we round-up the best savings accounts and Isa accounts on offer in 2019.
The UK’s biggest banks paid as little as 20p in interest on every £100 saved by cash Isa holders last year. Our analysis of the interest paid by the large banks and building societies reveals just how tight-fisted they are with loyal savers.
Savers who have accounts with Virgin Money, Clydesdale Bank, Yorkshire Bank and their offshoot B have seen a change in the level of compensation they could receive in the unlikely event of the group running into trouble.
At its latest meeting at the start of November, the Bank of England Monetary Policy Committee left the base rate unchanged at 0.75%. But that has not stopped providers chipping away at the rates they pay savers.
National Saving and Investment (NS&I) has withdrawn its popular Guaranteed Growth and Guaranteed Income Bonds from general sale.
Those already holding the bonds can still renew them when they reach their maturity date – but at a lower rate.
Banks and building societies are busy cutting the rates that they pay savers. The falls impact easy-access accounts offered to new savers, as well as those that were on sale in the past. Thousands of savers are currently earning a pittance on cash languishing in more than 1,400 easy-access accounts, which are closed to new savers.
Savings rates on easy access accounts have finally been creeping up, with the top rate now 1.5%. But often this rate is only available to new customers.
Banks and building societies used to pass rate rises on to all savers in variable rate accounts, but now most of them only offer a higher rate to new customers. Loyal savers continue to earn the lower rate, which in the worst cases can be as low as 0.25%.
More than a million savers with National Savings and Investments face changes when they come to renew their accounts from 1 May.
Savers have relatively little time to use their £20,000 cash Isa allowance for this tax year before the 5 April deadline. Around this time every year, banks and building societies generally bring out new accounts to tempt savers with better rates. But this year, so far, things have been pretty quiet on the Isa front.
Savers desperate for top rates on their easy-access savings have snapped up the 1.5% Marcus account on offer from the mighty Goldman Sachs. In the first 40 days after its launch in late September, it had clocked up no fewer than 100,000 customers.