Savings update: falling rates continue to hover just above the 2% mark

25 January 2016
Savings rates on fixed-rate bonds and cash Isas continue to fall this week.
On taxable bonds, the best one-year fixed rate deal remains at 2.06% before tax (1.65% after) from French-owned RCI Bank.
With this French-owned bank your money is covered by the European compensation scheme which gives €100,000 (around £76,000).
Charter Savings Bank and Close Brothers are among the next best payers at 1.85% (1.48%). Paragon Bank pays 1.8% (1.44%) to new savers, down from 1.91% (1.57%) last week.
For two years RCI pays 2.35% (1.88%) and Charter Savings Bank 2.15% (1.72%). Charter also offers an 18 month deal at 1.95%(1.56%).

Easy-access accounts

On easy-access accounts you can earn 1.65% (1.32%) at best from RCI Bank's internet accounts. Paragon Bank pays 1.46% (1.17%) and Shawbrook 1.45% (1.16%).
At Virgin Money the rate is 1.41% (1.13%) but you are limited to a maximum of three withdrawals a year.
The top one-year fixed rate for cash Isas is 1.65& tax-free from Virgin Money and Leeds Building Society.
On easy-access cash Isas, Virgin Money’s Defined Access Isa pays 1.51%. It limits you to three withdrawals a year. Coventry Building Society, meanwhile, pays 1.5%. Both accept transfers from other providers.

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