Savings update: Providers pull top rates

19 December 2017

Top savings rates have disappeared this week as Virgin Money, Charter Savings Bank and Atom Bank lowered rates on their leading accounts.

Virgin Money Double Take eSaver now pays 1.26% to new savers, down from a previous 1.36%. Atom Bank cut is leading one-year fixed rate bond from 1.85 pc to 1.7% for those opening an account now while Charter Savings Bank is down from 1.81% to 1.76%.

The best rate on ordinary easy access accounts is 1.3% and comes from the RCI Bank Freedom account – although this is covered by the French deposit protection scheme rather than FSCS - and the Post Office Money Online Saver (Issue 28), which this includes a 1.05% bonus for the first year.

On one-year fixed rate bonds, the best online rates are 1.78% from PCF Bank, 1.77% from OakNorth Bank or 1.76% from Charter Savings Bank.  In the high street the best you can do is 1.35% from Virgin Money.  
On easy-access Cash Isas the best rate is 1.1% from Shawbrook Bank online or 0.9 pc in the high street from both Coventry and Skipton building societies.

On fixed rate Cash Isas, Virgin Money has upped its one-year rate to a top 1.41% while Aldermore at 1.65% pays the top two-year rate.

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.

Read more on savings and Cash Isas on Moneywise

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