Savings rates are on the rise: here are the top paying accounts

Published by Sylvia Morris on 19 June 2017.
Last updated on 19 June 2017

Rates on both easy-access accounts and fixed-rate bonds continue to rise.

Kent Reliance has upped the rate on its Easy Access Account to a top 1.15 per cent for new savers, just ahead of online Charter Savings Bank which increased its rate to 1.11 per cent earlier this month.

From tomorrow (20 June) Bank of Cyprus Online Easy Access rate rises to 1.11 per cent, up from its current 1.05 per cent, for new savers.

The Kent Reliance account is available online, through its limited branch network and by post.  Bank of Cyprus rate includes a bonus of 0.51 percentage points for the first year.  Neither the Kent Reliance or Charter Savings Bank rate is boosted by a short-term bonus.

On fixed rate deals the top one-year deal is 1.8 per cent from Atom Bank, followed by Kent Reliance at 1.7 per cent.

The Atom account is only available for those willing to run the account on a smart phone or tablet.

Atom pays 2 per cent for two years with the next best deal from Secure Trust Bank at 1.85 per cent

On tax-free cash Isas, Charter Savings Bank has launched an easy-access deal at a top 1.06 per cent.  Virgin Money offers 1.05 per cent but you are restricted to making three withdrawals a year on your account to earn this rate.

The top one-year fixed cash Isa rate is now 1.16 per cent from Charter Savings Bank while Paragon Bank pays 1.26 per cent for two years. 

All of the top paying accounts mentioned above, however, fall short of the current inflation rate of 2.9 per cent.

To beat inflation compromises need to be made as all of the small number of regular savings accounts that pay more than inflation require savers to have a current account with the provider.  We regularly keeps tabs on the savings market has found there are nine accounts that currently beat inflation

This article was written for our sister magazine Money Observer.

 

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But while it has introduced

But while it has introduced the 1.15% Easy Access account for £1k+ new savers, KRBS has over the past year applied repeated reductions to its High Balance Easy Access account (£20k+) - from 1.65% to the present 1% - and says it has no plan to change this. Hardly the best way to retain loyal customers!