May 2018: What are the best savings account rates?

With interest rates slowly back on the rise, we round-up the best savings accounts and Isa accounts on offer in 2018.

 
Rates on easy-access accounts continue to edge up. Bank of Cyprus UK has upped the rate on its online easy-access account to 1.32 per cent. It puts it just ahead of Paragon Bank’s new Limited Edition Easy Access account at 1.31 per cent.

But bear in mind the Bank of Cyprus UK account comes with an initial bonus, which only lasts for 12 months. The rate then drops to 0.85 per cent.

Elsewhere, Shawbrook Bank has also increased its Easy Access account rate to 1.3 per cent for new savers.

In the high street Yorkshire Building Society Single Access Saver pays 1.25 per cent, but you are limited to making withdrawals on just one day a year.

Other top high street accounts with no withdrawal restrictions include Kent Reliance at 1.25 per cent, Virgin Money at 1.01 per cent and Coventry Building Society at 1 per cent. 

On taxable fixed-rate bonds the best one-year rate come from Paragon Bank at 1.86 per cent with Atom, Tandem, Close Brothers, OakNorth and United Trust banks all paying 1.8 per cent. For eighteen months you can earn 1.96 per cent with Secure Trust Bank.  It also pays the top two- year rate of 2.16 per cent.

On tax-free cash Isas, Paragon Bank Limited Edition Cash Isa pays 1.31 per cent, Shawbrook Bank 1.3 per cent and Coventry Building Society 1.25 per cent.

On fixed-rate cash Isas, Bank of Cyprus UK pays the best one-year rate at 1.51 per cent, followed by Paragon Bank at 1.5 per cent and Kent Reliance at 1.48 per cent.  The top rate for two years is 1.68 per cent with Kent Reliance. 

How to beat inflation

To beat inflation, currently running at 2.5 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 and has tracked down the savings accounts that are beating inflation.

-UK inflation: where’s it heading in the long term?

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