Savings update: Virgin Money raises top-paying cash Isa rate to 1.51%

1 February 2016

Savings rates continue to shift this week with falls outweighing any rises.

Virgin Money has raised the rate for its easy-access cash Isa to a top 1.51%. The new tax-free deal applies to those already in its Defined Access Isa Issue 4, as well as to those opening an account now. You can only make three withdrawals a year from your account.

The move puts it just ahead of Coventry Building Society, which pays 1.5% on its Easy Access Isa. Both are available online, through branches, by post or over the telephone and accept transfers from other providers.

On fixed rate cash Isas the best one-year deal comes from Leeds Building Society and Virgin Money, both at 1.65%. For two years, Kent Reliance, Leeds Building Society, Principality Building Society and Shawbrook Bank all pay 1.85%.

Easy-access accounts

On easy-access accounts Paragon Bank has closed its Limited Edition Easy Access 2 at 1.46% before tax (1.17% after) to new savers.

The best deal is 1.65% (1.32%) from RCI Bank. With this French-owned bank your money is covered by the European compensation scheme which gives €100,000 (around £76,000), rather than by the UK scheme.

The next best rate comes from Shawbrook Bank 1.45% (1.16%). At Virgin Money the rate is 1.41% (1.13%), but you are limited to making three withdrawals a year.

On taxable bonds, the top one-year fixed rate deal remains at 2.06% before tax (1.65% after) from French-owned RCI Bank. Charter Savings Bank pays 1.85% (1.48%).

Over two years, RCI pays 2.35% (1.88%) and Close Brothers 2.05 % (1.64%). Shawbrook Bank, Charter Savings Bank and Kent Reliance all pay 2%.

Use Moneywise’s tool to compare savings accounts and cash Isas. It’s also important to set yourself a savings goal and stick to it.


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