Savings update: bag a top deal for Christmas

20 December 2016

Banks and building societies continue to juggle their rates on both fixed and variable rate deals.

Aldermore Bank has edged up the rates on its fixed-rate cash Isas and now pays a top 1.2% for two years.

It also pays a near-top 1% for one year. The best one-year deal comes from Leeds Building Society at 1.01% while Virgin Money also pays 1%.

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%. You can't transfer your existing cash Isas into these accounts.


Top Isa rates

The top deals for transfers is the new Virgin Money Defined Access Isa, available online, through its branches or by post, at 0.95%. But on this account you are limited to making three withdrawals a year. If you make more, then your rate drops to 0.5%.

The Family Building Society Market Tracker Isa at 0.9% accepts transfers and there are no withdrawal restrictions.

The top taxable easy-access accounts comes from Leeds Building Society's Limited Issue Online Saver, Tesco Bank Internet Saver and French-owned RCI Bank Freedom account all at 1%.

The Tesco rate is boosted by a bonus paid for the first year, after which your rate drops to 0.4%.

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% and new Masthaven Bank 1.35%.

For two years Atom pays 1.6%, Ikano Bank 1.55% and Masthaven 1.53%.

With Atom you have to run your account on your phone through its app, while with Swedish-owned Ikano and French-owned RCI Bank your money is covered by European compensation schemes rather than the UK Financial Services Compensation Scheme.

The French scheme gives you €100,000 (around £84,000) worth of cover and the Swedish, £75,000.

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

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