Savings rates continue to tumble

Published by Sylvia Morris on 21 January 2014.
Last updated on 21 January 2014

Pound coins in hand

Savings rates continue to fall as Halifax cut the rate on its Online Saver and Everyday Saver easy-access accounts.

Its Online Saver now pays just 0.9% before tax (0.72% after tax) including a bonus for the first year to new savers on sums of between £1 and £20,000. After twelve months the rate drops to 0.2% (1.6%). Santander new issue of its e-Saver - issue 11 - pays 1% (0.8%) for the first year.

Halifax pays 0.75% (0.6%) including a bonus for a year to new savers opening its Everyday account.

Top deals remains Tesco Internet Saver at 1.55% (1.24%) including a 0.8 (0.64) percentage point bonus for the first year. Coventry Building Society Online Saver 5 pays slightly more at 1.6% (1.28%) but you are limited to four free withdrawals a year from the account.

On branch-based accounts you can earn 1.51% (1.21%) with Virgin Money.

Shawbrook Bank has closed its top-paying fixed rate bonds to new savers and issued new bonds at lower rates. The top one-year deals come from State Bank of India at 1.85% (1.48%) followed by Britannia , part of Co-op Bank, at 1.84% (1.47%) and Post Office at 1.82% (1.46%).

On two year deals FirstSave pays a top 2.35% (1.88%) and Shawbrook Bank 2.3% (1.84%. For three years you can earn 2.55% (2.04%) with Investec or 2.51% (2.01%) with National Counties Building Society.

Find the best cash Isa or savings account for you

Isas

On tax-free cash Isas the top easy-access deal comes from Post Office at 1.8% including a 0.9 percentage point bonus for the first eighteen months. Virgin Money and Britannia both pay 1.75% and all three accept transfers in from other providers.

On fixed rate deals both Britannia and Aldermore Bank pay 1.85% and accept transfers. Post Office pays 2.25% for two years while Virgin Money and Principality both pay 2.4% for three years. Coventry pays a higher 2.75% but, unlike with these other fixed rate deals, you cannot transfer your existing cash Isas into the account.

This article was written for our sister website Money Observer

More About

Leave a comment