Savings update: Easy-access rates edge up

3 October 2017

Last week Mark Carney, governor of the Bank of England, said interest rates could rise in the ‘relatively near term’.

It is the clearest indication yet that there could be a rise from its historic 0.25% low as early as November 2 when the Monetary Policy Committee meets to decide base rate.

Rates on easy access accounts have been edging up and the top deal is currently offered by Kent Reliance at 1.27%.

On fixed rate bonds the best one-year deal comes from Kent Reliance at 1.85% online or 1.3% in the high street from Virgin Money. For two years Atom and Paragon banks pay 2.05%.

Rates on cash Isas are lower. The top easy access deal is 1.1% from Charter Savings Bank while Sainsbury’s Bank pays 1.06%. Charter Savings also offers the best fixed rate deals at 1.4% for one year or 1.65% for two years.

Savings accounts to beat inflation

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 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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