Savings update: challenger bank rates creep up

Published by Sylvia Morris on 12 May 2017.
Last updated on 12 May 2017

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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