Savings update: new bond puts United Trust Bank at top of fixed-rate deal table
It puts it just ahead of Charter Savings Bank at 2.07 per (1.66 per cent after tax) and French-owned RCI Bank and FirstSave both at 2.06 per cent (1.65 per cent).
For two years top deals include Aldermore, RCI and Harrods banks all at 2.35 per cent (1.88 per cent) and Charter Savings Bank at 2.32 per cent (1.86 per cent).
On easy-access taxable accounts the best rate is 1.65 per cent (1.32 per cent after tax) from RCI Bank Freedom Account. With this bank you are not covered by the UK compensation scheme. If the bank goes bust you claim from the European scheme where the maximum amount is €100,000 (around £72,000).
West Bromwich WebSave Easy Saver pays 1.55 per cent (1.25 per cent) and Virgin Money Defined Access Saver 1.51 per cent (1.21 per cent). With the Virgin account you are limited to making three withdrawals a year.
On tax-free cash Isas the top easy-access account comes from Post Office Online Cash Isa at 1.51 per cent including a 0.86 percentage point bonus for the first 12 months.
Virgin Money Defined Access Isa is a slightly better rate at 1.56 per cent but it limits you to making three withdrawals a year - although there is no bonus on this account.
Best deals with no bonus and no withdrawal facilities come from Nationwide's Instant Isa Saver Issue 3 and Sainsbury's Bank Cash Isa both at 1.4 per cent.
On fixed-rate cash Isas Virgin Money pays a top 1.81 per cent for one year followed by AA Savings, where the deposit taker is Bank of Ireland, at 1.75 per cent. Virgin Money pays 2.06 per cent for two years.
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.