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

Published by on 01 February 2016.
Last updated on 02 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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