Savings update: easy-access deals continue to improve

17 January 2017

Rates on easy-access accounts continue to edge up marginally. Nottingham BS has launched its eSaver Instant issue 6 at 1.02% before tax. RCI Bank has also pushed its Freedom Account rate up to 1.02%.

Swedish-owned Ikano Bank has launched its first easy-access account paying 0.8%.

Other top deals include Virgin Money at 0.95% on its Defined Access Saver 9, available online, through its branches or by post. You are limited to three withdrawals a year - make more and the rate drops to 0.25%.

Post Office Online Saver pays 1.01% but this rate includes a 0.76% bonus which only lasts for 12 months. After than your rate plummets to 0.25%.


Fixed-rate deals

On fixed-rate deals, Atom Bank and Ikano Bank pay a top 1.4% for one year. Charter Savings Bank rate is 1.38% and Masthaven Bank's 1.35%.

Leeds Building Society pays 1.3% fixed until 2 April next year and gives you access to half your cash in the bond during the term without paying a penalty.

Charter Savings Bank pays 1.4% for 18 months while the top rates for two years are 1.6% from Atom Bank and 1.56% from OakNorth Bank.

The best rate on easy-access cash Isas comes from National Savings & Investments Direct Isa at 1%. You can't transfer your existing cash Isas into this account.

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

Family Building Society Market Tracker Isa pays 0.9% with no withdrawal restrictions and accepts transfers.

On fixed-rate cash Isas Leeds Building Society offers the best deal at 1.01% while Virgin Money and Aldermore Bank both pay 1%.

For two years Aldermore Bank pays a top 1.2% while both Virgin Money and Leeds Building Society pay 1.15%.

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

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