Virgin Money woos new savers with high easy access rate
Virgin Money has raised the rate to new savers on its easy access account to 1.3% before tax (1.04% after), up from 1.1% (0.88%).
It puts it among the best deals on both branch-based and internet accounts with no short-term bonus and no withdrawal restrictions. Sainsbury's Bank has also relaunched its eSaver account at 1.3% (1.04%).
Tesco pays a slightly higher 1.35% (1.08%) on its Internet Saver but this includes a 0.6 (0.48) percentage point bonus which is only paid for the first 12 months.
Coventry Post Save Easy Access pays 1.4% (1.12%) but you can only make 12 withdrawals a year. At Britannia, part of Co-op Bank, you can earn 1.32% (1.65%) with its Select Saver 5, as long as you make no more than four withdrawals a year.
On fixed-rate deals, the top one-year fixed rate deal comes from internet bank FirstSave at 1.88% (1.49%). BM Savings, part of Halifax, pays 1.75% (1.4%) on its one-year deal available through the post.
For two years, you can earn 2.1% (1.68%) with the new deal from Virgin Money.
On tax-free cash ISAs, the best easy access deals come from Cheshire and Derbyshire building societies, both part of Nationwide, at 1.6%.
You cannot transfer your existing cash ISAs into these accounts. For transfers, Nationwide Instant ISA Saver is among the top deals.
On fixed-rate cash ISAs Tesco Bank and Kent Reliance both pay 1.65% for a year, although Tesco does not accept transfers. Virgin Money pays 2.1% fixed for two years and accepts transfers.
This article was written by 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.