Savings update: banks and building societies keep cutting rates

17 May 2016

Cash Isa rates continue to fall with Coventry Building Society cutting the rate on its Easy Access Isa to 1.3% for new savers, down from a previous 1.4%. And Virgin Money has withdrawn its 1.31% easy-access deal from sale.

The top easy-access cash Isa now comes from Yorkshire Building Society's Triple Access Saver at 1.35%, but you are limited to making withdrawals from your account to three days in a year.

Sainsbury's Bank still pays 1.3% with no withdrawal restrictions and, like Yorkshire, will accept transfers from other providers.


On fixed rate accounts new deals from Britannia, part of Co-op Bank, at 1.4% for one year or 1.5% for two years top the best buy tables.

On taxable accounts, the top easy-access deal is 1.45% before tax (1.16% after) from French-owned online bank RCI.

Other rates

Virgin Money Defined Access account issue 6 pays 1.26% (1.01%) and is available through branches, by post or online. It limits the number of withdrawals you can make each year to just three. If you make any more the rate drops to 0.5% (0.4%).

The online Shawbrook Easy Access 5 pays 1.25% (1%) with no withdrawal restrictions.

On fixed rate bonds the best one-year rate comes from Close Brothers at 1.7% (1.36%) - although iPad and iPhone users can sign up for the 2% (1.6%) on offer from the new Atom Bank.

For two years Atom pays 2.2% (1.76%) and Close Brothers 1.95% (1.56%).

This article was written for our sister website Money Observer.

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