Tesco Bank moves to the top of best savings tables

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

Tesco

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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