Internet accounts pay top savings rates
BM Savings, part of Halifax, has launched a new top paying internet-based account.
It pays 1.6% before tax (1.28% after tax) but it includes a bonus payable for the first twelve months. After this the rate drops to 0.5% (0.4%) and you are limited to four withdrawals a year.
It matches the top rate of 1.6% (1.28%) paid on Coventry Building Society's Online Saver 5, which also restricts you to four free withdrawals a year. However, there is no initial bonus on this account so the rate should not plummet after a year.
The top paying account with no restrictions is Sainsbury's Bank eSaver Special at 1.55% (1.24%).
On fixed rate deals you can earn 2.03% (1.62%) for one year or 2.21% (1.77%) for two years from Britannia, part of Co-op Bank. For three years the top rate comes from ICICI Bank at 2.55% (2.04%) while Shawbrook Bank has raised its five-year rate to 3% (2.4%).
On tax-free cash Isas the best easy access deal comes from Tesco at 2%, but you can't transfer your existing cash Isas into this account. The best deal for transfers is 1.75% from Virgin Money on £1, or 2% with BM Savings as long as you have a minimum £15,000.
On fixed rate cash Isas, Britannia pays 2% for a year or 2.25% for two years. The top three year deal comes from Coventry Building Society at 2.35%.
This article was written for our sister website Money Observer
This is a mutual organisation owned by its members and not by shareholders. These societies offer a range of financial services but have historically concentrated on taking deposits from savers and lending the money to borrowers as mortgages, hence the name. In the mid-1990s many societies “demutualised” and became banks. One academic study (Heffernan, 2003) found demutualised societies’ pricing on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates. In 1900, there were 2,286 building societies in the UK; in 2011, there are just 51.