Savings update: higher deals hard to find as tax year end approaches

7 March 2017
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Only a handful of banks and building societies have launched new Isa accounts to encourage savers to use their cash Isa allowance of up to £15,240 before the end of this tax year on 6 April.

Any increases are small. AA Savings, where the deposit taker is Bank of Ireland, has raised the rate on its Easy Access Isa to 0.86% including a fixed rate bonus of 0.66% for the first year.

The top rate comes from Paragon Bank Limited Edition Easy Access Cash Isa at 1.05%.

Virgin Money Defined Access Isa pays 1.01% but limits you to making three withdrawals a year. Both accept transfers from other providers.

 

Fixed-rate and taxable deals

On one-year fixed rate deals the best deals are just 1.05% from Virgin Money, 1.01% from Leeds Building Society and 1% from Aldermore Bank and Saga.

For two years, you can earn a slightly higher 1.2% with Leeds and Skipton building societies and Aldermore Bank.

On taxable accounts the top one-year fixed rate bond comes from Atom Bank. To open an account savers must use an app on their phone or tablet. The next best deal is 1.61% from Secure Trust Bank available online.

On the high street, the best deal comes from Virgin Money at 1.05% or 1% from Yorkshire Building Society.

On easy-access accounts internet-based French bank RCI pays a top 1.1% on its Freedom Account followed by Leeds Building Society Limited Edition Online Saver at 1.05%.

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

 

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