Fixed rate savings continue to rise – where to find the best savings rates

4 July 2017

Fixed rate bonds continue to edge up with the top one-year rate coming from online bank OakNorth Bank at 1.86% for one year and Paragon Bank at 1.85%. 

For two years the top rate comes from Paragon at 2.05% followed by OakNorth at 2.01%.

On easy-access accounts Ulster Bank eSavings pays a top 1.25%.  Tesco Bank has edged its Internet Saver rate up to 1.11% for new customers, in line with Bank of Cyprus UK.

Both Tesco Bank and Bank of Cyprus UK rates are boosted by an initial bonus, so you need to move your money after 12 months or you will find you are earning much less.  The Ulster Bank deal has no short-term bonus. 

On tax-free cash Isas, Charter Savings Bank pays a top 1.06%.    Virgin Money offers 1.05% but you are restricted to making three withdrawals a year on your account to earn this rate.  The next best deal comes from Sainsbury’s Bank at 1.01%.

The top one-year fixed cash Isa rate is 1.16% from Bank of Cyprus UK and Charter Savings Bank followed by Paragon Bank and Shawbrook Bank at 1.15%.  For two years Virgin Money and Progressive Building Society pay 1.3%.

How to beat inflation

To beat inflation, currently running at 2.9%, 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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