Savings update: Virgin new issue puts it amongst market leading rates

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Virgin Money has launched a new issue of its Defined Access Saver and Defined Access Isa at 0.95%.

The rate is amongst the leaders but you can only make three withdrawals a year. If you make more, then your rate drops to 0.5% on the tax-free cash Isa and 0.25% before tax on the easy-access ordinary savings account.

The top easy-access accounts online are Leeds Building Society's Limited Issue Online Saver, Tesco Bank Internet Saver and French-owned RCI Bank all at 1%. The Tesco rate is boosted by a bonus paid for the first year, after which your rate tumbles to 0.4%.

On easy-access cash Isas the top rate comes from Coventry Building Society at 1.1% followed by National Savings & Investments Direct Isa at 1%. But you can't transfer your existing cash Isas into these accounts.

 

Other top deals

The top deals for transfers is the new Virgin Money Defined Access Isa, available online, through its branches or by post, at 0.95%.

On fixed rate bonds the top one-year deal comes from Atom and Ikano banks at 1.4% while Charter Savings Bank pays a whisker less at 1.38%.

For two years Atom pays 1.6% and both Ikano Bank and Hampshire Trust 1.55%.

The best one-year rate on fixed rate cash Isas comes from Leeds Building Society at 1.01% followed by Virgin Money at 1%. Both Aldermore Bank and Leeds pay 1.15% for two years.

With Atom you have to run your account on your phone through its app while with French-owned RCI Bank your money is covered by the European compensation scheme rather than the UK Financial Services Compensation Scheme. The European scheme gives you €100,000 (around £84,000) worth of cover.

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

Published: 12 December 2016
Last updated: 12 December 2016

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