Trio of banks' rates creep over the 2% mark

17 August 2015
Fixed-rate bond rates are edging up, with four banks paying 2% before tax (1.6% after tax) for a year. Charter Savings Bank and French-owned RCI Bank both pay 2.06% (1.65%), while Kent Reliance has upped its rate to 2.02% for new savers and Aldermore Bank to 2% (1.6%). Tesco and Shawbrook banks now both pay a slightly lower 1.95% (1.56%). The top deals for two years come from Secure Trust Bank at 2.38% (1.9%) and Aldermore Bank at 2.35% (1.88%) while Tesco, Kent Reliance and Charter Savings banks all pay 2.25% (1.8%). On easy-access accounts RCI Bank, part of the Renault group, pays the best deal at 1.65% (1.32%). Your money is covered by the French deposit protection scheme which gives €100,000 (£70,800) of cover if the bank goes bust.Find the best cash Isa or savings account for you Best dealsThe best deal where your money is covered by the UK scheme with a higher £75,000 comes from BM Savings, part of Halifax. Its Online Extra Issue 18 pays 1.6% (1.28%), but this includes a bonus for 12 months, after which the rate drops to 0.5% (0.4%). Virgin Money Defined Access Saver pays at 1.51% (1.21%), but on this account you are limited to making a maximum of three withdrawals a year. Three top-paying accounts with no bonus and no withdrawal restrictions are Skipton Building Society's Limited Edition eSaver issue 2 at 1.4% (1.12% after tax), Kent Reliance's new High Balance Easy Access account 1.55% (1.24%) with a minimum £20,000, and the Kent Reliance Online Saver minimum £1,000 at 1.45% (1.16%). On tax-free cash Isas, Shawbrook Bank pays 1.75% and Virgin Money's 1.71% for one year. For two years you can earn 2% with Halifax, Shawbrook Bank, Skipton Building Society and Virgin Money, while at Coventry Building Society the rate is 2.05% fixed until the end of November 2017. Leeds Building Society's new account pays 2.3% for three years. On easy-access cash Isas, National Savings & Investments Direct Isa pays 1.5% and Virgin Money Defined Access Isa pays a slightly higher 1.51%, but you are limited to three withdrawals a year. You can transfer your existing cash Isas to Virgin Money, but not to the National Savings account. Nationwide at 1.4% accepts transfers and does not limit you to the number of withdrawals you make. This article was written for our sister website Money Observer

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