Kent Reliance raises top-paying savings rates
Some savings rates have started to edge up, with Kent Reliance now paying a top 2.1% before tax (1.61% after tax) fixed for one year.
The next best deal is 1.95% (1.56%) from Investec Bank.
Kent Reliance is also raising its two-year deal to a top 2.3% (1.84%). Investec Bank also pays 2.3% (1.84%) for two years.
On easy-access accounts West Bromwich has a new WebSaver Limited Access launching today (29 July) at 1.4% (1.12%), but you are limited to three free withdrawals a year.
BM Savings new Online Extra 12 pays 1.31% (1.05%), including a bonus but with no withdrawal restrictions.
The rate drops to 0.5% (0.4%) once you have been in the account for a year. Best deals with no bonus and no withdrawal restrictions come from Virgin Money Easy Access and Sainsbury's Bank e-Saver, both at 1.3% (1.04%).
The top easy-access tax-free cash Isa rate is 1.6% from Cheshire and Derbyshire building societies, but you cannot transfer your existing cash Isas into these accounts.
For transfers you can earn 1.55% with BM Savings Extra Isa 11. But the rate includes a bonus and drops to 0.5% after you have been in the account for 12 months.
Kent Reliance also pays 1.55% and the rate is not boosted by a bonus. Other good deals with no bonus include Nationwide Instant Isa Saver and Virgin Money Easy Access Cash Isa, both at 1.5%.
West Bromwich Building Society is raising the rate on its WebSaver Isa to 1.5% for new and existing savers on 1 August.
On fixed-rate cash Isas, top rates include 1.75% from Kent Reliance and 1.65% from Tesco Bank, both fixed for one year. For two years you can earn 2.1% with Kent Reliance or 2.05% with Nationwide.
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.