Challenger banks lead savings tables

Challenger banks lead savings tables

Virgin Money has closed its Defined Access Easy Access account paying 1.41% before tax (1.13% after) to new savers. The top easy access rate is 1.35% (1.08%) from internet bank Paragon Bank with no withdrawal restrictions and no initial bonus.

Tesco Bank also pays 1.35% (1.08%) with no limit on the number of times you take money out each year. But the rate includes a 0.6 (0.48) percentage point bonus for the first 12 months, after which the rate drops to 0.75% (0.6%).

On fixed rate deals, both FirstSave and Shawbrook Bank pay 1.9% (1.52%) and Kent Reliance 1.85% (1.48%) for one year. Top two-year deals include 2.21% (1.77%) from Paragon Bank and 2.15% (1.72%) from FirstSave.

Find the best cash Isa or savings account for you

Tax-free cash Isa rates

On tax-free cash Isas the top easy access rate at 1.5% comes from National Savings & Investments, available by phone or online.

If you are willing to tie your money up on a fixed-rate deal, you can earn a tax-free 1.62% with Skipton Building Society for one year or 1.6% from Nationwide Building Society along with Shawbrook, Aldermore, Virgin Money and Post Office banks.

For two years the top Isa rate comes from Aldermore and Kent Reliance at 1.85% while both Skipton and Nationwide pay 1.8%.

This article was written for our sister website Money Observer

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