Savings update: top rates keep on falling

18 January 2016

Fixed rate deals continue to fall both on bonds and cash Isas.

Tesco has cut the rate on its one-year fixed rate cash Isa from 1.75 per cent to 1.31 per cent for new savers. The best deal is now 1.65 per cent from Virgin Money, Leeds Building Society and Shawbrook Bank.

On easy access cash Isas, Coventry Building Society pays a top 1.5 per cent while Virgin Money Defined Access Isa pays 1.41 per cent. The latter limits you to three withdrawals a year. Both accept transfers from other providers.

Easy-access accounts

On taxable bonds, the best one-year fixed rate deal comes from RCI Bank at 2.06 per cent before tax (1.65 per cent after).

With this French-owned bank your money is covered by the European compensation scheme which gives €100,000 (around £76,000), rather than the UK scheme.

The next best deal is 1.91 per cent (1.57 per cent) from Paragon Bank.

On easy-access accounts you can earn 1.65 per cent (1.32 per cent) at best from internet accounts run by both RCI and ICICI banks. Paragon Bank pays 1.46 per cent and Shawbrook 1.45 per cent.

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