Savings update: Challenger banks launch top-paying accounts

Published by Sylvia Morris on 21 November 2017.
Last updated on 21 November 2017

Savings update: Challenger banks launch top-paying accounts

While some banks and building societies continue to keep savers in the dark about how much they can expect their rate to rise, following this month’s Bank of England base rate rise to 0.5%, new banks are launching top-paying accounts.

Charter Savings Bank’s new Easy Access Issue 8 pays a top 1.32% while Paragon Bank Limited Edition Easy Access 4 pays marginally less at 1.31%. There are no withdrawal restrictions and neither rate is boosted by an initial bonus. 

On fixed rate bonds, the top one-year fixed-rate bond comes from Atom Bank at 1.95% on an account you run on your smart phone or table.  Charter Savings Bank’s new internet-based one-year bond pays 1.81%, and OakNorth Bank’s pays 1.8%

On tax-free cash Isas, Shawbrook Bank has launched an easy-access deal at 1.1%. Coventry Building Society currently pays 1.05%, but this rate is set to rise to 1.3% on December 1.

On fixed-rate cash Isas, the best rate for a one-year deal is 1.4% from Yorkshire Building Society, followed by Charter Savings Bank at 1.36%

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 accounts that currently beat inflation.

This article was written for our sister magazine Money Observer.

 

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