Savings update: only a handful of easy-access rates now top 1%

1 November 2016
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Savings rates continue to fall as banks and building societies cut their easy-access rates.

Only a handful - including French-owned RCI Bank and Kent Reliance - still pay 1% before tax to new savers.

Others which matched this rate earlier this month have cut their rates to either 0.75% or even 0.5%.

On fixed rate bonds, top deals include internet-based Charter Savings Bank at 1.38% for one year or 1.51% for two years.

Atom Bank pays a slightly higher 1.4% for one year and 1.55% for two years for those willing to run the account through an app on their smart phone.

Cash Isa rates

 

The top deal on easy-access cash Isas is 1.1% tax-free from Coventry Building Society but you can't transfer your existing cash Isas into this account.

The best deal for transfers comes from Family Building Society at 1.09%.

On fixed rate cash Isas the top one-year rate comes from Tesco Bank at 1.11% followed by Kent Reliance at 1.1%. Both Kent Reliance and Aldermore Bank pay marginally more - 1.15% - on two year fixed accounts.

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

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