Savings update: Swedish and French banks shake up top rates table

Swedish piggy

Swedish-owned Ikano Bank UK has launched a one-year fixed rate bond at 2% before tax (1.6% after tax). It sits just behind the top rate of 2.01% (1.61%) from French-owned RCI Bank UK.

With both these banks your money is not covered by the UK Financial Compensation Scheme. Instead it is under the pan-European scheme with €100,000 (around £77,000) of cover.

The top rate covered by the UK scheme is 1.76% (1.41%) from online Charter Savings Bank, down from 1.81% (1.45%) last week. In the high street you can earn 1.6% (1.28%) from Coventry Building Society.

For two-year bonds, top deals include 2.25% (1.8%) from RCI Bank, 2.15% (1.72%) from Ikano Bank and 2% (1.6%) from Paragon Bank.

Easy access accounts

On easy-access accounts RCI Bank Freedom account pays a top 1.55% (1.24%). Virgin Money Defined Access pays 1.41% (1.13%, but you are limited to three withdrawals a year.

Other top deals include both Virgin Money Saving to Buy and Shawbrook Easy Access 3 at 1.3% (1.04%) with no withdrawal restrictions.

On easy-access cash Isas, Coventry Building Society Easy Access Isa pays 1.4% tax-free.

It is only bettered by Virgin Money's 1.41% on its Defined Access Isa, which limits you to three withdrawals a year. Kent Reliance and Yorkshire Building Society both pay 1.35%.

On fixed-rate cash Isas the best one-year rate is 1.5% from Aldermore, Kent Reliance, Virgin Money and Shawbrook banks. For two years the top deal is 1.85% with Kent Reliance or 1.75% with Metro Bank or Aldermore Bank.

All these top cash Isa accounts bar Coventry Building Society let you transfer your existing cash Isas into them.

Find the best cash Isa for you with our comparison tool.


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