Shawbrook boosts savers by raising two-year fixed-bond rate
Shawbrook Bank has raised the rate it pays on its taxable two-year fixed rate deal for new savers to 2.3% before tax (1.84% after tax).
The rate puts it ahead of other best buys from State Bank of India at 2.1% (1.68%) and Britannia, part of Co-op Bank, at 2.05% (1.64%).
On one-year fixed-rate bonds the top rate also comes from Shawbrook Bank at 1.85% (1.48%), followed by Britannia at 1.71% (1.37%). State Bank of India pays 1.7% (1.36%), while with Virgin Money and BM Savings the rate is 1.6% (1.28%).
On taxable easy-access accounts the top rate of 1.5% (1.2%) comes from Britannia, followed by Yorkshire Building Society and Coventry Building Society at 1.4% (1.12%). All three limit the number of withdrawals you can make from the account to three or four a year.
Best deals with unlimited access to your account come from Leeds Building Society, Yorkshire Building Society and Virgin Money at 1.25% (1%).
On cash Isas the best deal for transfers comes from BM Savings at 1.65% on a minimum £20,000. Santander pays 1.6% on £1,000 or more. On fixed-rate accounts you can earn 2% with Halifax fixed for 18 months or 2.05% with Halifax and Nationwide for two years.
This article was written for our sister website Money Observer
Invidivual Savings Accounts were introduced on 6 April 1999 to replace personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs) with one plan that covered both stockmarket and savings products, the returns from which are tax-exempt. The ISA is not in itself an investment product. Rather, it’s a tax-free “wrapper” in which you place investments and savings up to a specified annual allowance where the returns (capital growth, dividends, interest) are tax-exempt (you don’t have to declare ISAs and their contents on your tax return). However, any dividends are taxed within the investment, and that can’t be reclaimed.
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.