Watch out for disappearing bonuses on savings accounts

Piggy banks

Savers should seek out alternatives to popular accounts where bonuses have run their course.

From 14 July savers with Yorkshire Building Society will see their rate on Triple Access Saver 3 fall to 1.2% before tax (0.96% after), down from 1.4% (1.12%). Despite the fall, the rate is still attractive for a branch-based account. The top deal, however, comes from Britannia Select Saver 5 at 1.65% (1.32%) but you are limited to four withdrawals a year.

On online accounts Tesco Internet Saver pays 1.35% (1.08%) including a bonus for the first 12 months. With rival Sainsbury's Bank e-Saver, you earn 1.3% (1.04%) where the rate is not boosted by an initial bonus.

Other cuts in the pipeline include NatWest Cash Isa. From August 1 the rate drops to a tax-free 0.75%, down from 1%, on balances up to £25,000. The rate for higher amounts drops to 1% from its current 1.25%.

Best Cash Isas

The top easy access cash Isa rate comes from BM Savings Extra Isa 11 at 1.55% and you can transfer your existing cash Isas into the account. But the rate drops to 0.5% after a year so you have to be prepared to move your money.

Nationwide Instant Isa Saver pays 1.5%. The rate is not boosted by an initial bonus and it accepts transfers from other providers. Virgin Money also pays 1.5% on its Cash E-Isa.

On fixed rate cash Isas the top deals include Britannia and Tesco Bank at 1.65%. Halifax pays 1.7% for 18 months while at Nationwide you earn 2.05% fixed for two years.

Best taxable fixed rates

The best deals on one-year fixed rate bonds where the interest is taxable include FirstSave at 1.88% (1.5%), Investec at 1.85% (1.48%) and BM Savings at 1.75% (1.4%).

If you are willing to tie your money up for two years you can earn 2.2% (1.76%) with Investec, 2.16% (1.73%) with Kent Reliance or 2.1% (1.68%) with the new Paragon Bank and FirstSave.

This article was written for our sister website Money Observer

More about