Top savings rates deals can last just days

Published by Sylvia Morris on 19 November 2013.
Last updated on 19 November 2013

Pound in life ring

Savers need to act swiftly to pick up top rate bonds offered by building societies - they can be on sale for just a few days.

The top two-year bond at 2.4% before tax (1.92% after tax) from National Counties Building Society was on sale for just five days before it was withdrawn.

The top one-year fixed rate deal comes from BM Savings, part of Halifax, at 2% (1.6%), while you can earn 2.05% (1.64%) for eighteen months with Tesco and GE Capital Direct.

The best two-year rates come from Close Brothers at 2.3% (1.84%), or 2.25% (1.8%) with AA Savings, where the deposit taker is also Halifax, Tesco and Investec Bank. Shawbrook offers 2.65% (2.12%) if you are willing to tie your money up for three years.

On easy access accounts BM Savings pays 1.7% (1.36%) including an initial bonus but limits you to four withdrawals a year. Coventry Building Society pays a slightly lower 1.6% (1.28%) where the rate is not boosted by an initial bonus, but you are still limited to a maximum of four withdrawals a year.

The top rates on easy access accounts with no bonus and no withdrawal restrictions come from Sainsbury's Bank eSaver Special at 1.55% (1.24%) and Virgin Money Easy Access Saver (available through branches, post or online) at 1.51% (1.21%).

Find the best cash Isa or savings account for you

On tax-free cash Isas, the best one-year fixed rate deals come from Virgin Money at 1.91% along with 1.9% from Post Office, where the deposit taker is Bank of Ireland, and Bath Building Society. Britannia, where the deposit taker is Co-op Bank, pays 2.05% for two years while Coventry tops the three-year deals at 2.75%. However, you can't transfer your existing cash Isas into the Coventry account. The top rate for transfers over three years is 2.25% from Halifax and Aldermore Bank.

On easy access cash Isas, Virgin Money, Britannia and National Savings & Investments all pay 1.75%. But the latter won't accept transfers. Post Office pays the top rate of 1.8% but the rate is boosted by a 12-month bonus.

Last week Nationwide and its offshoots Derbyshire, Cheshire and Dunfermline cut rates on their Easy Isa Account for new savers to 1.6% from 1.75%.

This article was written for our sister website Money Observer

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