September 2018: What are the best savings account rates?

Average rates are rising across the board for first time in seven years.

Kent Reliance has launched a new issue of its Easy Access account paying a top 1.37 per cent. It is available online and through its branches. Coventry Building Society pays a slightly higher 1.4 per cent on its Limited Access Saver but that includes a 0.25 percentage point bonus payable for the first year and limits you to making three free withdrawals every 12 months.

On fixed rate bonds, the top rate is currently 2.02 per cent from ICICI Bank, followed by Charter Savings Bank and Oaknorth Bank, both at 2.01 per cent. Atom, Investec, Tandem and Zenith banks all pay 2 per cent.

For 18 months you can earn marginally more with the 2.11 per cent from Charter Savings Bank, while the best two-year rate is 2.25 per cent from Investec, PCF and Tandem banks. 

On easy-access cash Isas the best rate comes from Virgin Money’s Double Take E-Isa at 1.35 per cent, but you are limited to making two withdrawals a year. Yorkshire Building Society matches this rate on its Single Access Isa which restricts you to making withdrawals on just one day in a year – and you are moved into a lower paying account after the first 12 months. 

The top rate with no withdrawal restrictions is Shawbrook Bank Easy Access Cash Isa 4 at 1.3 per cent.

On fixed rate cash Isas, Paragon Bank pays 1.55 per cent, Bank of Cyprus 1.54 per cent with Shawbrook Bank at 1.51 per cent.

The best two-year rate is 1.75 per cent from Shawbrook Bank, followed by 1.71 per cent from Charter Savings Bank. 

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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Comments

Excellent Website

I've just come across your website and was pleasantly surprised at the straight forward, no frills, information provided with regard to easy access savings accounts. Well done and thank you.

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