More cuts to cash Isa and savings rates adds to consumer woe

20 squeezed

Savers have to brace themselves for more bad news as banks and building societies close their top easy-access deals to new savers.

In a flurry of cuts last week, top deals on both cash Isas and taxable accounts disappeared.

Post Office closed its Premier Cash Isa to new savers which paid a top 1.8% while Coventry Building Society shut the doors on its Online Saver account. It paid a top 1.6% before tax (1.28% after tax). And in a further blow to savers Virgin Money cut the rate to new savers on both its Cash Isa to 1.61% and Easy Saver account to 1.41% (1.13%)

The top easy-access cash Isa comes from Britannia, part of Co-op Bank, at 1.75%, while on taxable deals the best rate is 1.5% (1.2%) with Tesco Bank Internet Saver, AA Internet Extra Issue 13 and State Bank of India Instant Access Savings Account.

On fixed rate taxable deals the best one-year rate comes from State Bank of India at 1.85% (1.48%) followed by Britannia at 1.84% (1.47%)

On two years you can earn 2.25% (1.8%) with Post Office or 2.1% (1.68%) with National Counties BS.

On cash Isas, Britannia pays 1.85% fixed for one year and Post Office 2.25% for two years.

Find the best Cash Isa or savings account for you

This article was written for our sister website Money Observer

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