New banks are jostling to offer top rates on fixed rate bonds and easy-access accounts.
Charter Savings Bank has a new online easy-access deal at a top rate of 1.11%, just ahead of RCI Bank’s 1.1%. Shawbrook pays 1.05% and AA Savings 1.03% on its Member Saver, open to its four million members.
You can earn 1.06% with Tesco Bank and 1.05% at Bank of Cyprus, but these rates are boosted by a bonus which lasts for 12 months before the rate drops.
In the high street, the top rate is 1.01% from Virgin Money Defined Access Saver, which restricts you to making three withdrawals a year. Kent Reliance pays 1% through its limited branch network, while National Counties Building Society Branch Saver 5 pays 0.86% and Coventry Building Society Access Saver 0.85%.
On fixed rate bonds, the top one-year deal comes from internet bank Charter Savings Bank and Kent Reliance, both at 1.55%, while in the high street, Virgin Money pays 1.11%. For two years, you can earn 1.76% with Charter Savings Bank or 1.75% from Secure Trust Bank, while Virgin Money’s new deal pays 1.61%.
On tax-free cash Isas, Coventry Building Society, Sainsbury’s Bank and Ford Money all pay a leading 0.9%. Virgin Money offers a better deal at 1.01% but you are restricted to making three withdrawals a year on your account to earn this rate.
Bank of Cyprus UK pays the best one-year fixed rate at 1.13%, followed by Virgin Money at 1.11% and Shawbrook Bank at 1.1%. For two years the best deals come from Paragon Bank at 1.26% and Bank of Cyprus 1.23%.