Savings update: rates for new savers continue to fall

14 December 2015
Halifax and Lloyds pay just 0.6 per cent on their easy-access cash Isa to new savers, while Nationwide has cut its rate from 1.4 per cent to 1.2 per cent.The top deal with no bonus and no withdrawal restrictions comes from Coventry Building Society at 1.5 per cent. The Post Office pays a marginally higher 1.51 per cent, but the rate includes a bonus for the first 12 months after which it drops to 0.65 per cent.The best fixed-rate cash Isa deals for one year come from AA Savings – where the deposit taker is Bank of Ireland – at 1.76 per cent, followed by Tesco Bank at 1.75 per cent.For two years AA Savings pays 2.01 per cent, while Shawbrook Bank and Principality Building Society both offer 2 per cent.On taxable fixed-rate bonds the top one-year rate comes from United Trust Bank at 2.15 per cent (1.72 per cent after tax), while FirstSave pays 2.12 per cent (1.7 per cent). For two years you can earn 2.35 per cent (1.88 per cent) from RCI Bank and Harrods Bank.On easy-access taxable accounts the best rate is still 1.65 per cent (1.32 per cent) from RCI Bank Freedom Account. With this bank you are not covered by the UK compensation scheme. If the bank goes bust you can claim from the European scheme where the maximum amount of compensation is €100,000 (around £70,000).The next best rate is Tesco Bank Internet Saver at 1.5 per cent (1.2 per cent) including a 0.75 (0.6) per cent bonus for 12 months. Skipton Limited Edition eSaver pays 1.4 per cent (1.12 per cent).

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