ICICI Bank leaps to the top of savings tables

20 January 2015

The top easy-access account comes from ICICI Bank at 1.4% before tax (1.12% after). AA Savings, Tesco Bank and BM Savings have all cut their rate from this level for new savers in the last week or so.

Coventry Building Society still pays 1.4% (1.12%) on its PostSave account but you have to run the account through the post and are limited to 12 withdrawals a year.

Kent Reliance pays a top 1.5% (1.2%) but the account is only available through its limited branch network.

On fixed-rate bonds, Virgin Money has upped its one-year rate to 1.7% (1.36%), placing it just behind the leaders State Bank of India at 1.8% (1.44%), National Counties BS at 1.76% (1.41%) and Paragon, Kent Reliance, Aldermore and Harrods Bank all at 1.75% (1.4%).

Find the best Cash Isa or savings account for you

Cash Isas

Harrods Bank pays 1.95% (1.56%) for 18 months, while the best two-year deal is 2.25% (1.8%) from State Bank of India and Harrods Bank.

On tax-free fixed-rate cash Isas, the top one-year deal is now Virgin Money's 1.7%. For two years Post Office pays 1.95%, while both Kent Reliance and Aldermore Bank pay 1.85%.

On easy-access cash Isas you can earn a tax-free 1.5% on Post Office Premier Cash Isa. The rate includes a 0.85 percentage point bonus for the first 18 months you are in the account.

Top deals with no bonus include Barclays Bank Instant Cash Isa issue 1 at 1.49% on a minimum £30,000 or Sainsbury's Bank at 1.45%. All three accept transfers from other providers.

National Savings & Investments pays 1.5% on its Direct Isa, but you cannot move the cash Isas you hold with other providers into this account.

This article was written for our sister website Money Observer

Add new comment