Savings update: Easy access accounts edge up rates

23 May 2017
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Newcomer Ford Money has launched a top regular savings plan at 4% fixed for a year. You can save between £25 and £250 a month into its ordinary plan or the cash Isa version, alter the amount or miss payments altogether without losing out on the rate. The account is open to all savers age 16 or over. 

 

Meanwhile rates on taxable easy-access accounts continue edge up, with Charter Savings Bank raising its rate for new savers to 1.01%, just ahead of Ford Money, Kent Reliance and AA Member Saver, all at 1%. Tesco Bank pays 1.06% and Bank of Cyprus 1.05%, but these rates are boosted by a bonus which lasts for 12 months before the rate drops. 

 

RCI Bank still 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 the others, you are covered up to £85,000 by the UK Financial Services Compensation Scheme.

In the high street, the top rate is 1% from Yorkshire Building Society and Kent Reliance. But with the Yorkshire account you are restricted to making withdrawals on just one day of your choosing a year from this easy-access account. National Counties Building Society Branch Saver 5 pays 0.86%, while Coventry Building Society pays 0.85%. 

On fixed rate bonds, the top one-year deal comes from internet bank Charter Savings Bank at 1.55%, while in the high street, Virgin Money has raised its rate to 1.11%. For two years, you can earn 1.76% with Charter Savings Bank or, in the high street, 1.21% from Virgin Money.

 

On tax-free cash Isas, the top easy access deal is 0.9% from Coventry BS, Sainsbury’s Bank and Ford Money. The new Ford Money Regular Saver Cash Isa is a better deal for those wanting to save monthly and not planning to put more than £3,000 into these tax-free accounts this tax year.

Bank of Cyprus pays the best one-year fixed rate at 1.15%, followed by Virgin Money at 1.11% and Shawbrook Bank at 1.1%.  For two years Bank of Cyprus pays 1.25%, closely followed by both Aldermore and Paragon banks at 1.2%.

 

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

 

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