Savings update: act now before easy-access rates fall below 1%

3 October 2016

Savings rates continue to fall on easy-access accounts with best deals at 1% before tax (0.8% after tax).

The latest cut comes from Tesco Internet Saver which now pays new savers 1.01% before tax (0.81% after) down from 1.07% (0.86%). The rate includes a bonus for the first year, after which the rate drops to 0.4% (0.32%).

The fall comes hot on the heels of the cut made by French-owned RCI Bank on its easy-access internet-based Freedom Account to 1% before tax (0.8% after tax) last week.

Others paying the top 1% (0.8%) without a bonus include Virgin Money Man United Red Devil Saver, Shawbrook Bank Easy Access 5, Coventry Building Society Easy Access 3, Kent Reliance Easy Access 16 and Aldermore Bank Easy Access 10


Other top deals

With RCI Bank you are covered by the French compensation scheme which pays out up to €100,000 (around £86,000) and not by our home Financial Services Compensation Scheme which gives up to £75,000.

On fixed rate deals the best one-year rate comes from internet-based Charter Savings Bank at 1.38% (1.1%). The bank pays a higher 1.4% (1.12%) if you are willing to tie your money up for 18 months.

On easy-access tax-free cash Isas top rates include 1.1% from Coventry Building Society but you can't transfer your existing Isa savings into this account. Family Building Society Market Tracker Nisa pays 1.09% and accepts transfers.

The best one-year fixed rate cash Isa from Shawbrook, Aldermore and Kent Reliance banks at 1.1%. For two years Shawbrook Bank pays 1.2%.

This article was originally written for our sister magazine, Money Observer.

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