National Savings & Investments have relaunched its fixed-rate Guaranteed Growth Bonds and Guaranteed Income Bonds. It is the first time they have been on sale for eight years.
The one-year bond pays 1.5 per cent – or 1.45 per cent if you take income monthly rather than annually. If you tie your money up for three years, the rates are 2.2 per cent and 2.15 per cent respectively.
The one-year rate is attractive compared with big banks and building societies. But newer banks pay higher rates with the top rate coming from Charter Savings Bank at 1.81 per cent.
The three-year deal is among the top payers, beaten only by Ikano Bank’s 2.21 per cent. While, the top two-year rate is 2.06 per cent from Secure Trust Bank.
On easy-access accounts Birmingham Midshires has raised the rate on its Internet Saver to a top 1.45 per cent for both new and existing savers. The rate includes a bonus for the first 12 months. Virgin Money reacted swiftly, moving its Double Take E-Saver Issue 2 account rate up to 1.36 per cent. With this account you are limited to making just two withdrawals a year.
The best deal with no bonus or withdrawal limits comes from French-owned RCI Bank at 1.3 per cent followed by Shawbrook Bank at 1.2 per cent. With RCI you are covered by the French deposit scheme which gives up to €100,000 (around £88,000), if the bank runs into trouble. With Shawbrook you come into our own Financial Services Compensation Scheme, which covers you up to £85,000.
The top easy-access Cash Isa rate comes from Shawbrook Bank at 1.1 per cent, while on fixed rate deals Charter Savings Bank and AA Savings pay 1.36 per cent for one year. The best rate for two years is 1.72 per cent from Charter Savings Bank.
- Retune your portfolio to profit from the interest rate rise
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.