Virgin Money shoots to top of cash Isa charts

Cash Isa

Virgin Money has launched a two-year fixed rate cash Isa paying a tax-free 2%. The rate puts it comfortably ahead of the former best deals of 1.8% from both Nationwide and Shawbrook Bank. The Virgin deal is fixed until September 2017 and is available in its branches and online.

Its one-year rate for new savers is also up at a leading 1.71%.

On easy access cash Isas, the best deal comes from National Savings & Investments at 1.5%, but you can't transfer your existing cash Isas into this account.

The best deal for transfers comes from Nationwide Instant Isa Saver Issue 3 at 1.4%. Virgin pays a marginally higher 1.41% but limits you to three withdrawals of capital a year.

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East-access accounts

On easy access taxable accounts Paragon Bank has launched another version of its Limited Edition Easy Access account at 1.46% before tax (1.17% after tax). It is slightly less than the 1.5% (1.2%) you earn in French bank's RCI Freedom account.

The French deal comes under the European deposit administration scheme, which covers savers for up to €100,000 (around £72,000). Money in the Paragon account is covered by the UK scheme up to £85,000, but this will fall to £75,000 from 1 January.

On fixed rate taxable bonds Charter Savings Bank pays 2.06% (1.65%) for one year or 2.25% (1.8%) for two years, available online. Also among the leaders are United Trust Bank at 2.05% (1.64%) for one year and Secure Trust at 2.33% (1.86%) for two years.

This article was written for our sister website Money Observer

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