Savings update: Move quickly for best rates

6 October 2015
Savers have to move quickly to grab top rates on easy-access accounts, as these do not stay around for long.Both Tesco and Kent Reliance have launched new deals at lower rates. Tesco Bank new Internet Extra pays 1.5 per cent (1.2 per cent after tax), down from its previous 1.6 per cent (1.28 per cent), which was on sale for just two weeks.The new deal includes a 0.75 (0.6) percentage point bonus for the first year. Kent Reliance Easy Access account now pays 1.35 per cent (1.08 per cent) to new savers. Last month it offered 1.65 per cent (1.32 per cent).The top deal on easy-access accounts comes from French-owned RCI Bank, part of the Renault group, at 1.65 per cent before tax (1.32 per cent after tax) on its Freedom account. But here you are not covered by the UK compensation scheme. If the bank goes bust, you claim from the European scheme where the maximum amount is €100,000 (around £73,500).The latest issue of Post Office Online Saver pays 1.61 per cent (1.29 per cent), including a bonus for the first year you are in the account. After this the rate drops to 0.65 per cent (0.52 per cent).On fixed rate deals, internet bank Charter Savings pays a top 2.07 per cent (1.66 per cent) for one year. RCI Bank pays 2.06 per cent (1.65 per cent) and Shawbrook Bank 2.05 per cent (1.64 per cent). For two years you can earn 2.4 per cent (1.92 per cent) with Paragon Bank, 2.35 per cent (1.88 per cent) with RCI or 2.32 per cent (1.86 per cent) with Charter Savings Bank.On easy-access tax-free cash Isas, Virgin Money now pays 1.56 per cent on its Defined Access Isa, which limits you to three withdrawals a year. The top deal with no bonus or withdrawal restrictions is 1.4 per cent, from Nationwide. Both accept transfers from other providers.On fixed rate cash Isas, Shawbrook Bank pays a top 1.85 per cent and Virgin Money 1.81 per cent for one year. For two years Mansfield Building Society offers a top 2.1 per cent, but you can't transfer your existing cash Isas into this account. Virgin Money pays a 2.06 per cent and accepts transfers.

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