Top savings rates tumble again
Rates on easy-access accounts continue to fall, as both Virgin and Skipton cut the rates they offer new savers last week.
The top rate on easy-access accounts comes from Saga at 1.55% after tax (1.24% before), but this is only available to those aged 50 and over and willing to use the internet.
The best deal open to all is 1.4% (1.12%) from AA Savings and Post Office.
On cash Isas you can earn 1.55% tax-free with BM Savings including a bonus for the first year, and you can transfer your existing cash Isas into the account. Be prepared to move again in 12 months' time when the rate drops to 0.5%.
Long-term fixed rates
If you are willing to tie your money up for a year or more, Kent Reliance pays a top 1.9% (1.52%) for a year, while State Bank of India and Shawbrook Bank both pay 2.25% (1.8%) for two years.
On tax-free cash Isas the top one-year rate is 1.7% from the Post Office, while AA Savings and Barclays pay 2% for two years.
With the Barclays account you can make three withdrawals during the term, taking out up to 10% of your money each time without charge.
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.