Tesco Bank moves to the top of best savings tables

25 November 2014

Tesco Bank has raised the rate on its Internet Saver to 1.4% before tax (1.12% after tax) for new savers. The rate includes a 0.6 (0.52) percentage point bonus for the first year.

It puts Tesco among the top payers alongside AA Savings and Post Office, both of which pay 1.4% (1.12%) including a bonus for the first 12 months.

Those aged 50 or more can do better with Saga Internet account at 1.55% (1.24%) for the first year.

Meanwhile other top rates continue to disappear, with Sainsbury's Bank cutting its Extra Saver to 1.1% (0.88%) on £1,000, while Santander e-Saver is down to just 0.7% (0.56%) for new savers.

Find the best Cash Isa or savings account for you

Cash Isas

On fixed-rate bonds the top one-year rate comes from Kent Reliance at 1.9% (1.52%), while the best two-year deal is 2.25% (1.8%) from both State Bank of India UK and Shawbrook Bank.

On easy-access cash Isas the top rate remains at 1.55% tax-free from BM Savings and Post Office. Both include a bonus for the first year.

The top rate with no bonus is 1.5% from National Savings & Investments, but you cannot move your existing cash Isas into this account.

Barclays Bank pays 1.49%, but on a minimum £30,000, and Sainsbury's Bank pays 1.45%; both accept transfers.

You can earn 1.7% tax-free fixed for one year with Post Office, or 2% fixed for two years with Barclays Bank and AA Savings.

This article was written for our sister website Money Observer

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