New banks are jostling to offer top rates on fixed rate bonds and easy-access accounts.
Charter Savings Bank has a new online easy-access deal at a top rate of 1.11 per cent, just ahead of RCI Bank’s 1.1 per cent. Shawbrook pays 1.05 per cent and AA Savings 1.03 per cent on its Member Saver, open to its four million members.
You can earn 1.06 per cent with Tesco Bank and 1.05 per cent at Bank of Cyprus, but these rates are boosted by a bonus which lasts for 12 months before the rate drops.
In the high street, the top rate is 1.01 per cent from Virgin Money Defined Access Saver, which restricts you to making three withdrawals a year. Kent Reliance pays 1 per cent through its limited branch network, while National Counties Building Society Branch Saver 5 pays 0.86 per cent and Coventry Building Society Access Saver 0.85 per cent.
On fixed rate bonds, the top one-year deal comes from internet bank Charter Savings Bank and Kent Reliance, both at 1.55 per cent, while in the high street, Virgin Money pays 1.11 per cent. For two years, you can earn 1.76 per cent with Charter Savings Bank or 1.75 per cent from Secure Trust Bank, while Virgin Money’s new deal pays 1.61 per cent.
On tax-free cash Isas, Coventry Building Society, Sainsbury’s Bank and Ford Money all pay a leading 0.9 per cent. Virgin Money offers a better deal at 1.01 per cent but you are restricted to making three withdrawals a year on your account to earn this rate.
Bank of Cyprus pays the best one-year fixed rate at 1.15 per cent, followed by Virgin Money at 1.11 per cent and Shawbrook Bank at 1.1 per cent. For two years the best deals come from Paragon Bank at 1.26 per cent and Bank of Cyprus 1.25 per cent.