Savings update: newcomer Atom tops chart with 1.4% deal
Atom Bank has launched new top-paying fixed rate bonds at 1.4% and 1.65% for two years. You have to download the bank's app to run an account.
Other top one year deals include Charter Savings Bank at 1.38%. The bank pays a higher 1.4% if you are willing to tie your money up for 18 months.
The best you will do on an easy-access account is 1% on offer from Shawbrook Bank Easy Access 5, Coventry Building Society Easy Access 3, Kent Reliance Easy Access 16, Paragon Bank Easy Access and RCI Bank Freedom account. With the latter, you are covered by the French compensation scheme which pays out up to €100,000 (around £86,000) and not by our home Financial Services Compensation Scheme which gives up to £75,000. These rates are variable and could be cut at any time.
Other top deals
Family Building Society Market Tracker Nisa pays 1.09% and accepts transfers.
The best one-year fixed rate cash Isa comes from banks Aldermore and Kent Reliance banks at 1.1% while Skipton Building Society along with Co-op and Tesco banks pay 1%.
For two years Julian Hodge Bank pay 1.2% and Aldermore and Kent Reliance 1.15%.
- 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.