Savings update: top fixed-rate bonds wiped out

8 February 2016

Banks and building societies continue to trim the rates they offer new savers on fixed rate bonds.

The top deal remains at 2.06% before tax (1.65% after) from French-owned RCI Bank. But Charter Savings Bank has trimmed its rate from 1.85% (1.48% after tax) to 1.81% (1.45%) for new savers.

Meanwhile, Paragon has withdrawn its one-year deal at 1.8% (1.44%), while United Trust Bank has cut from 1.8% (1.44%) to 1.7 % (1.36%).

With RCI Bank your money is covered by the European compensation scheme, which gives €100,000 (around £77,000 at the current exchange rate), rather than by the UK scheme.

Compare savings accounts with our comparison tool.

Easy access deals

RCI also pays the top easy-access rate at 1.65% (1.32%), followed by Shawbrook Bank at 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 fixed-rate cash Isas the best one-year deal is from Virgin Money, at 1.6% tax-free. Shawbrook Bank and Kent Reliance both pay 1.85% for two years.

On easy-access cash Isas, Coventry Building Society has cut the rate for new savers in its Easy Access Isa to 1.4%, down from 1.5%. But it is still an attractive deal.

It is only bettered by Virgin Money's 1.51% on its Defined Access Isa, which limits you to making three withdrawals a year.


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