Savings update: no respite for last-minute cash Isa savers

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National Savings & Investments has announced it will cut the rate it pays on its popular Direct Isa to 1% from 1.25% for all savers from June.

The top rate on easy-access cash Isa is 1.4% from Coventry and Skipton building societies. But the new Skipton account, Bonus cash Isa, includes a 0.4 percentage point bonus paid for the first 12 months after which the rate drops to 1%.

Virgin Money pays 1.31% and Marks & Spencer Bank and Sainsbury's Bank 1.3%.

Fixed-rate deals

On fixed rate cash Isas, the top one-year deal is just 1.45% from Kent Reliance, while Virgin Money, Skipton Building Society and Marks and Spencer Bank all pay 1.4%. For two years Kent Reliance pays 1.65% and TSB 1.6%.

On taxable easy-access accounts RCI Bank Freedom account pays 1.45% before tax (1.16% after). Aldermore Bank and Kent Reliance pay 1.25% (1%).

On fixed rate bonds, the top one-year deal is 1.91% (1.53%) from Charter Savings Bank. On the high street, the best you can do is 1.4% (1.12%) from Skipton Building Society and Virgin Money.

For two years the Swedish-owned Ikano Bank pays 2.15% (1.72%) and Charter Savings Bank 2% (1.6%).

See our top savings and top cash Isas articles for the latest best buys.

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