Challenger banks lead savings tables

Published by Sylvia Morris on 26 May 2015.
Last updated on 26 May 2015

Challenger banks lead savings tables

Virgin Money has closed its Defined Access Easy Access account paying 1.41% before tax (1.13% after) to new savers. The top easy access rate is 1.35% (1.08%) from internet bank Paragon Bank with no withdrawal restrictions and no initial bonus.
Tesco Bank also pays 1.35% (1.08%) with no limit on the number of times you take money out each year. But the rate includes a 0.6 (0.48) percentage point bonus for the first 12 months, after which the rate drops to 0.75% (0.6%).
On fixed rate deals, both FirstSave and Shawbrook Bank pay 1.9% (1.52%) and Kent Reliance 1.85% (1.48%) for one year. Top two-year deals include 2.21% (1.77%) from Paragon Bank and 2.15% (1.72%) from FirstSave.
Find the best cash Isa or savings account for you

Tax-free cash Isa rates
On tax-free cash Isas the top easy access rate at 1.5% comes from National Savings & Investments, available by phone or online.
If you are willing to tie your money up on a fixed-rate deal, you can earn a tax-free 1.62% with Skipton Building Society for one year or 1.6% from Nationwide Building Society along with Shawbrook, Aldermore, Virgin Money and Post Office banks.
For two years the top Isa rate comes from Aldermore and Kent Reliance at 1.85% while both Skipton and Nationwide pay 1.8%.

This article was written for our sister website Money Observer

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