Savings rates fall to end 2014

Pound coins falling

Rates for savers have continued to fall this year. The top easy-access cash Isa rate comes from Post Office Premier Cash Isa at a tax-free 1.5%. A year ago Post Office paid 1.8% to new savers opening this account.

The current 1.5% includes a 0.65 percentage point bonus for the first eighteen months you are in the account.

Top deals with no bonus include Barclays Bank Instant Cash Isa issue 1 at 1.49% on a minimum £30,000 or Sainsbury's Bank at 1.45%.

All three accept transfers from other providers. National Savings & Investments pays 1.5% on its Direct Isa but you cannot move the cash Isas you hold with other providers into this account. It is open to new cash Isa money only.

Find the best Cash Isa or savings account for you

Fixed-Rate Cash Isas

On fixed rate cash Isas, the best one-year deal is 1.65% from both Tesco Bank and Virgin Money. For two years Post Office pays a fixed 1.95% and both Kent Reliance and Aldermore Bank 1.85%.

On taxable easy-access accounts ICICI Bank Super Savings, AA Internet Savings and Post Office Online Saver issue 13 all at 1.4% before tax (1.12% after tax). Both AA and Post Office accounts include a bonus only payable for the first year after which the rate drops substantially.

On fixed rate bonds the best one-year deal comes from State Bank of India at 1.8% (1.44%) while Paragon, Kent Reliance, Aldermore and Harrods Bank all pay 1.75% (1.4%). The top two year deal is 2.33% (1.86%) from Secure Trust Bank while State Bank of India pays 2.25% (1.8%).

This article was written for our sister website Money Observer

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