Virgin Money woos new savers with high easy access rate

Published by Sylvia Morris on 25 June 2014.
Last updated on 25 June 2014

Virgin Money woos new savers with high easy access rate

Virgin Money has raised the rate to new savers on its easy access account to 1.3% before tax (1.04% after), up from 1.1% (0.88%).

It puts it among the best deals on both branch-based and internet accounts with no short-term bonus and no withdrawal restrictions. Sainsbury's Bank has also relaunched its eSaver account at 1.3% (1.04%).

Tesco pays a slightly higher 1.35% (1.08%) on its Internet Saver but this includes a 0.6 (0.48) percentage point bonus which is only paid for the first 12 months.

Coventry Post Save Easy Access pays 1.4% (1.12%) but you can only make 12 withdrawals a year. At Britannia, part of Co-op Bank, you can earn 1.32% (1.65%) with its Select Saver 5, as long as you make no more than four withdrawals a year.

On fixed-rate deals, the top one-year fixed rate deal comes from internet bank FirstSave at 1.88% (1.49%). BM Savings, part of Halifax, pays 1.75% (1.4%) on its one-year deal available through the post.

For two years, you can earn 2.1% (1.68%) with the new deal from Virgin Money.

On tax-free cash ISAs, the best easy access deals come from Cheshire and Derbyshire building societies, both part of Nationwide, at 1.6%.

You cannot transfer your existing cash ISAs into these accounts. For transfers, Nationwide Instant ISA Saver is among the top deals.

On fixed-rate cash ISAs Tesco Bank and Kent Reliance both pay 1.65% for a year, although Tesco does not accept transfers. Virgin Money pays 2.1% fixed for two years and accepts transfers.

This article was written by our sister website Money Observer.

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