Top savings rates continue to change

Pound coins

Banks and building societies continue to chop and change rates for savers.

The top easy-access cash Isa deal is 1.55% tax-free from BM Savings and Post Office. But both include a bonus for new savers, so you need to move your money when these run out.

The BM Savings rate tumbles to 0.5% after a year. The Post Office bonus lasts for 18 months before dropping to 0.75%. But there are withdrawals restrictions on this account - you can only make two withdrawals a year.

The top easy-access deal where the rate is not boosted by a bonus is 1.5% from National Savings & Investments. But you cannot transfer your existing cash Isas into this account.

Find the best Cash Isa or savings account for you


Best deals for transfers with no bonus include Barclays Instant Isa at 1.49% on a minimum £30,000, and Sainsbury's Bank and Teachers Building Society, both paying 1.45%. If you are prepared to tie your money up for a year, Post Office pays 1.7% and Tesco Bank 1.65%.

For two years Virgin Money pays 2.1% fixed until November 15 2016.

On taxable accounts the top rate on easy access accounts is 1.4% (1.12% after tax) from AA Savings, Post Office and Tesco Bank. All three come with a bonus which lasts for a year before the rate drops.

The best deal with no bonus is 1.3% (1.04%) from Virgin Money. Kent Reliance pays a higher 1.5% (1.2%), but it is only available through its limited branch network.

On fixed rate deals you can earn a top 1.85% (1.48%) with BM Savings for one year, or 2.36% (1.89%) from Secure Trust for two years.

This article was written for our sister website Money Observer

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