Savings update: Charter Savings Bank tops fixed-rate bond table
Charter Savings Bank has launched a one-year fixed rate bond paying a top 1.66% before tax (1.33% after tax), available online. The next best deals come from French-owned RCI Bank at 1.65% (1.32%).
The top rate on the high street is 1.25% (1%) from Leeds Building Society while Tesco pays 1.4% (1.12%) and United Trust 1.5% (1.2%) on telephone or postal accounts.
For two years you can earn 1.9% (1.52%) from RCI Bank while United Trust pays 1.85% (1.48%) and Tesco Bank 1.8% (1.44%).
On easy-access accounts you can earn 1.45% (1.16%) comes from French-owned RCI Bank while Shawbrook Bank pays 1.25% (1%). Both accounts are only available online.
Other top deals
At Virgin Money the rate is 1.26% (1.01%) on its Defined Access Saver, available online, through the post or in its branches. But you are limited to making three withdrawals a year on it.
Virgin also has a cash Isa version of the account - Defined Access Isa - also at 1.26% tax-free. Other good deals include Coventry Building Society's Easy Access Isa 3 at 1.3%.
On fixed rate cash Isas Britannia, a trading name at Co-op Bank, pays a top 1.4% fixed until 31 July 2017 or 1.5% until 31 July 2018.
With Tesco Bank you can earn 1.3% for one year, while other top two-year deals include Virgin Money, Leeds Building Society and Shawbrook Bank at 1.4%.
This article was originally written for our sister publication, Money Observer.
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.
This is a mutual organisation owned by its members and not by shareholders. These societies offer a range of financial services but have historically concentrated on taking deposits from savers and lending the money to borrowers as mortgages, hence the name. In the mid-1990s many societies “demutualised” and became banks. One academic study (Heffernan, 2003) found demutualised societies’ pricing on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates. In 1900, there were 2,286 building societies in the UK; in 2011, there are just 51.