Savings update: only five banks paying top 1% on easy-access accounts

11 October 2016

Earning 1% before tax on your easy-access savings is becoming increasingly difficult as providers cut their rates.

Once banks and building socieities find themselves at the top of the best buy tables they tend to drop their rates to stem the flow of money in.

Those paying the top 1% are now limited to just Shawbrook Bank Easy Access 5, Coventry Building Society Easy Access 3, Kent Reliance Easy Access 16, Paragon Bank Easy Access Issue 2, and Sainsbury’s Bank’s eSaver Special.

National Savings & Investments easy-access Income Bonds also pay 1% with interest added each month. But these variable rates could well be cut.


On fixed-rate deals the best one-year rate comes from internet-based Charter Savings Bank at 1.38%. The bank pays a higher 1.4% 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’s Market Tracker Isa 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 and Julian Hodge banks pay 1.2%.

Ikano Bank Fixed 1 Year Saver pays a higher 1.3% but you are covered by the Swedish compensation scheme, which pays out up to €100,000 (around £86,000) in the event the bank fails. You’re not covered by our home Financial Services Compensation Scheme, which gives up to £75,000 per financial institution in protection. 

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