BM Savings and Tesco offer top savings rates

Published by Sylvia Morris on 19 August 2014.
Last updated on 19 August 2014

Piggy bank

BM Savings, part of Halifax, now pays 1.35% before tax (1.08% after tax) on the latest issue of its Online Extra, placing it among the top headline rates for easy access accounts. But the rate drops to 0.5% (0.4%) after 12 months.

Tesco Bank Internet Saver also pays 1.35% (1.08%) with a bonus for the first 12 months, after which the rate falls to 0.75% (0.6%).

Sainsbury's Bank eSaver Special gives better value at 1.35% (1.08%) with no bonus.

West Bromwich WebSaver Limited Access pays a slightly higher headline rate of 1.4% (1.12%) but you are limited to three withdrawals a year. Coventry PostSaver also pays 1.4% (1.12%) with a more generous 12 withdrawals a year.

Find the best Cash Isa or savings account for you

Fixed-rate bonds

On fixed-rate bonds, top one-year rates come from Investec Bank at 1.95% (1.56%) and Paragon Bank at 1.9% (1.52%). For two years you can earn 2.3% (1.84%) with Investec and Kent Reliance.

On tax-free cash Isas Cheshire and Derbyshire building societies, both part of Nationwide, pay 1.6% on their easy access accounts but you can't transfer your existing cash Isas into the account.

For transfers BM Savings pays 1.55% including a bonus for the first year. Best deals for transfers with no bonus include Virgin Easy Access Cash Isa and Nationwide Instant Isa Saver, both at 1.5%.

On fixed rate cash Isas the top one-year rate at 1.65% comes from Kent Reliance and Tesco Bank. Yorkshire Building Society's new 18-month deals pays 1.75% while for two years Nationwide pays a top 2.05%.

This article was written for our sister website Money Observer

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