Savings update: challenger bank rates creep up

12 May 2017
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New banks continue to edge up their fixed rate deals. Aldermore Bank has increased the rate on its one-year bond to 1.5%, just behind the best deal at 1.55% from Charter Savings Bank.

For two years the top deal comes from Axis Bank UK at 1.70% followed by Paragon Bank at 1.7% and Charter Savings Bank 1.67%.

On taxable easy-access accounts RCI Bank pays the top 1.1%. With this French-owned bank your money is covered up to €100,000 (around £85,000) under the French scheme. With other top deals, you are covered up to £85,000 by the UK Financial Services Compensation Scheme.

 

Tesco Bank raised the rate on its Internet Saver to 1.06% this week, including a bonus of 0.66% for the first year. The rate on Bank of Cyprus UK Online Easy Access account is 1.05% including a bonus payable for the first 12 months.

Next best is Charter Savings Bank paying 1.01%. Other good deals with no bonus include new-comer Ford Money’s Flexible Saver and Kent Reliance Easy Access issue 18 both at 1%.

In the high street, the top rate is 1.1% from Yorkshire Building Society. But on this easy-access Single Access Saver account you are restricted to making withdrawals on just one day of your choosing a year. National Counties Building Society Branch Saver 5 pays 0.86% while Coventry Building Society pays 0.85%.

On easy-access cash Isas best deals come from Coventry Building Easy Access Isa 6, Ford Money and Sainsbury’s Bank all at 0.9%.

 

Skipton Building Society 1% on its Bonus Cash Isa but this rate includes a 0.35% bonus for a year.

On fixed-rate cash Isas, the top one-year deal comes from Bank of Cyprus UK at 1.13% along with Ford Money and Virgin Money at 1.05%. Bank of Cyprus UK pays a top 1.23% for two years, just ahead of Virgin Money at 1.21%.

This article was written for our sister magazine, Money Observer.

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