Savers need to be quick off the mark to grab the top deals on easy-access accounts.
Some, such as Charter Savings Bank Easy Access Issue 8 at 1.32%, are on sale for just a few days before closing to new savers. Other top deals to disappear include Paragon Bank Limited Edition Easy Access 4 at 1.31%, along with Coventry Building Society Easy Access Isa 6 at 1.05%; the latter’s rate is due to rise to 1.3% on 1 December.
The top easy-access account, RCI Bank Freedom Savings, pays 1.3%. With this account you are covered up to €100,000 (around £88,000) by the French compensation scheme rather than our own Financial Services Compensation Scheme. Birmingham Midshires also pays 1.3%, but this rate is boosted by a bonus payable for the first 12 months, after which the rate drops to 0.05%.
On fixed rate bonds, the top one-year fixed-rate bond comes Atom Bank at 1.95% on an account you run on your smartphone or tablet. Charter Savings Bank’s internet-based one-year bond pays 1.81%. For two years, Atom Bank and Axis Bank pay the best rate of 2.05%.
On tax-free cash Isas, Shawbrook Bank easy-access deal pays 1.1% and Post Office Money pays 1.07%, although this includes a 0.82% bonus for the first year. Thanks to the base rate increase, National Savings & Investments’ Direct Isa will pay 1% from 1 December 2017.
The best one-year Isa rate is 1.4% from Norwich & Peterborough Building Society or 1.36% from The AA, Charter Savings Bank and OakNorth Bank. For two years Charter Savings Bank pays 1.72%, ahead of Hodge Bank and Virgin Money at 1.55%.
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.