BM Savings and Tesco offer top savings rates

Piggy bank

BM Savings, part of Halifax, now pays 1.35% before tax (1.08% after tax) on the latest issue of its Online Extra, placing it among the top headline rates for easy access accounts. But the rate drops to 0.5% (0.4%) after 12 months.

Tesco Bank Internet Saver also pays 1.35% (1.08%) with a bonus for the first 12 months, after which the rate falls to 0.75% (0.6%).

Sainsbury's Bank eSaver Special gives better value at 1.35% (1.08%) with no bonus.

West Bromwich WebSaver Limited Access pays a slightly higher headline rate of 1.4% (1.12%) but you are limited to three withdrawals a year. Coventry PostSaver also pays 1.4% (1.12%) with a more generous 12 withdrawals a year.

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Fixed-rate bonds

On fixed-rate bonds, top one-year rates come from Investec Bank at 1.95% (1.56%) and Paragon Bank at 1.9% (1.52%). For two years you can earn 2.3% (1.84%) with Investec and Kent Reliance.

On tax-free cash Isas Cheshire and Derbyshire building societies, both part of Nationwide, pay 1.6% on their easy access accounts but you can't transfer your existing cash Isas into the account.

For transfers BM Savings pays 1.55% including a bonus for the first year. Best deals for transfers with no bonus include Virgin Easy Access Cash Isa and Nationwide Instant Isa Saver, both at 1.5%.

On fixed rate cash Isas the top one-year rate at 1.65% comes from Kent Reliance and Tesco Bank. Yorkshire Building Society's new 18-month deals pays 1.75% while for two years Nationwide pays a top 2.05%.

This article was written for our sister website Money Observer

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