New bonus deal makes Tesco best internet savings rate

Published by Sylvia Morris on 15 May 2014.
Last updated on 16 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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