New savers rates keep on falling

Published by Sylvia Morris on 24 February 2015.
Last updated on 24 February 2015

Pound coins falling

Rates for new savers looking for an easy-access account continue to fall.

Post Office has cut its rate from 1.4% before tax (1.12% after) to 1.2% (0.96%) for new savers, while BM Savings rate is down from 1.25% (1%) to 1% (0.8%). Both deals include a bonus payable for the first 12 months.

The top rate on easy-access internet-based accounts is 1.25% (1%) from State Bank of India and Kent Reliance. Neither are boosted by an initial bonus.

On fixed-rate bonds the top one-year rate comes from National Savings and Investments at 2.8% (2.24%), but this deal is only open to those age 65 or over and the maximum investment is £10,000. The next best rate comes from Harrods Bank at 1.75% (1.4%), followed by Post Office at 1.7% (1.36%).

For two-year deals, Harrods Bank pays 2.25% (1.8%) and Close Brothers 2.15% (1.72%). For three years National Savings leads the field with 4% (3.2%) for those age 65 or over. Trailing far behind, the next best deals come from Harrods Bank and Close Brothers, both at 2.5% (2%).

Find the best cash Isa or savings account for you

Cash Isas

On easy-access cash Isas you can earn a top tax-free 1.5% with National Savings & Investments Direct Isa, but you can't transfer your existing cash Isas into this account. There is no initial bonus on this account. Post Office Premier Isa also pays 1.5% - and accepts transfers - but this includes a bonus for the first 18 months. Best deal for transfers with no bonus is Barclays Bank Instant Cash Isa 1 at 1.49% on £30,000 or more.

On fixed-rate cash Isas the best one-year deal is Virgin Money at 1.65%, while Post Office pays 1.95% fixed for two years.

This article was written for our sister website Money Observer

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