Savings update: Rates continue to creep up

26 July 2017

French-owned RCI Bank has upped the rate on its easy-access online Freedom account to 1.2% for both new and existing savers. 

It puts it just behind Ulster Bank, which pays 1.25% on its e-Savings account. 

With the Ulster Bank account savers are covered up to £85,000 if the bank runs into trouble by the Financial Services Compensation Scheme. With RCI Bank you have €100,000 (around £88,000) under the equivalent French scheme.

Other top online deals include Shawbrook Bank at 1.20%, Bank of Cyprus at 1.15% (including a bonus for the first year) and Ford Money at 1.07%.  

On fixed-rate bonds the top rate for one year is 1.85% from Harrods Bank. OakNorth Bank pays 1.76% and Shawbrook, Paragon and Atom banks 1.75%. 

Whereas, on tax-free cash Isas best rates come from Ford Money at 1% for both new and existing savers. Virgin Money pays 1.01% but limits you to three withdrawals a year.  

The top one-year fixed cash Isa rate is Bank of Cyprus at 1.22% followed by Charter Savings Bank pays 1.21% and Paragon Bank at 1.2%.

For two years Charter Savings Bank pays a top 1.37% followed by Bank of Cyprus at 1.32% along with Virgin Money, Yorkshire Building Society and Progressive Building Society all at 1.3%.

How to beat inflation

To beat inflation, currently running at 2.6%, 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.




In reply to by anonymous_stub (not verified)

spend your money! don't bother saving it

In reply to by anonymous_stub (not verified)


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