Savings update: top fixed-rate bonds wiped out

Published by Sylvia Morris on 08 February 2016.
Last updated on 08 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Meanwhile, Paragon has withdrawn its one-year deal at 1.8% (1.44%), while United Trust Bank has cut from 1.8% (1.44%) to 1.7 % (1.36%).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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