Savings update: Banks continue to increase rates

27 June 2017
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Banks continue to increase the rates they are willing to offer new savers.

But these top deals can disappear quickly. Charter Savings Bank Easy Access account issue 4, at 1.11%, was on sale for just over three weeks before being closed to new savers from yesterday (June 26). 
 
The top easy-access account now comes from Ulster Bank with its new internet eSavings at 1.25%. The bank is part of the RBS group but has its own banking licence – so all your money up to £85,000 with Ulster Bank is covered by the UK Financial  Services Compensation Scheme. Other good deals include Kent Reliance at 1.15%.

On fixed rate bonds, the top one-year rate is 1.8 per cent from Atom Bank, followed by OakNorth Bank at 1.71%.  

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 OakNorth Bank at 1.87%.

On tax-free cash Isas, Charter Savings Bank pays a top 1.06% while Sainsbury’s Bank has upped its rate to 1.01% for new savers. Virgin Money offers 1.05%, 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 1.16% from Charter Savings Bank while for two years Virgin Money pays 1.3%.

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.  Moneywise 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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