Rates on savings accounts continue to rise

Published by Sylvia Morris on 16 September 2014.
Last updated on 16 September 2014

Pound note in piggy bank

Rates on easy-access accounts continue to edge up with the launch of the Post Office Online Saver Issue 12 at 1.4% before tax (1.12% after tax).

The account comes with a short-term bonus with the rate dropping to 0.75% ( 0.6%) after 12 months.

It follows hot on the heels of last week's launch of AA Savings Internet Extra also at 1.4% (1.12%) where the rate drops to 0.5% (0.4%) after a year.

Post Office, where the deposit taker is Bank of Ireland, has also launched Premier Cash Isa 7 at 1.55% tax-free including a 0.8 percentage point bonus for 18 months.

This puts it among the top payers along with BM Savings also at 1.55%. Both accept transfers from other providers.

Find the best cash Isa or savings account for you

Fixed-rate cash Isas

Top deals on fixed-rate cash Isas come from Post Office at 1.7% for one year or 2% for two years with AA Savings, Aldermore Bank or Barclays Bank.

On taxable fixed-rate bonds you can earn 1.9% (1.52%) for one year with Investec Bank or Paragon Bank.

For two years top deals come from Investec at 2.35% (1.88%) or 2.25% (1.80%) with State Bank of India (UK).

This article was written for our sister website Money Observer

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