New bonus deal makes Tesco best internet savings rate

15 May 2014

Tesco has raised the rate it pays to new savers opening its Internet Saver to 1.35% before tax (1.08% after tax). The rate includes a 0.6 (0.48) percentage point bonus payable for the first year you are in the account.

The new deal makes it the best rate for accounts run over the internet.

The top internet-based deal where the rate is not boosted by an initial bonus is 1.25% from Yorkshire, Leeds and Newcastle building societies.

Newcastle and Leeds building societies also pay 1.25% (1%) through their branch accounts.

The very top easy access rate comes from Britannia, part of Co-op Bank, at 1.5% (1.2%), but you are limited to four withdrawals a year.

Find the best cash Isa or savings account for you


On cash Isas you can earn a tax-free 2% through Coventry Building Society's Branch Instant Isa, but the deal is only available through its branches.

BM Savings is the next best at 1.65% on a minimum £20,000. Dunfermline, Cheshire and Derbyshire building societies, all part of Nationwide, pay 1.6% but don't allow transfers.

On fixed-rate cash Isas Halifax pays a top 1.65% for a year, or 2% for 18 months. Nationwide and Halifax both pay a slightly higher 2.05% for three years.

On fixed-rate taxable accounts Shawbrook pays a top 1.95% (1.56%) for a year, or 2.05% (1.64%) for 18 months. With Close Brothers you can earn 2.4% (1.92%) for two years, while Shawbrook pays 2.75% (2.2%) for three years.

This article was written for our sister website Money Observer

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