What are the best savings rates to kick off 2018?

Published by Sylvia Morris on 09 January 2018.
Last updated on 09 January 2018

Easy-access rates have edged up with the top account, AA Easy Saver (Issue 6), paying 1.32%. The rate includes a 1.12 percentage point bonus paid for the first 12 months after which you rate drops to a miserly 0.2%.

The best rate which does not include a bonus is 1.3% on the RCI Bank Freedom Savings Account, although this is covered by the French deposit protection scheme rather than the UK’s FSCS.

Post Office Money’s Online Saver (Issue 28) also pays 1.3%, with FSCS protection, although the rate drops to 1.05% after a year.

On easy-access cash Isas, Sainsbury’s Bank has raised its rate for new savers to 1.15%. AA Savings pays marginally more at 1.16% but you need to move your money after 12 months.  The AA account includes an initial bonus paid for the first year you are in the account, after which it drops to 0.2%. 

On fixed rate bonds the best one-year rate is 1.80% from Atom Bank. Investec Bank pays this too, but only on balances of £25,000 or more. Post Office Money’s Online Bond (Issue 41) pays 1.78% on balances of £500 or more. 

The best two-year deal comes from Paragon Bank, which pays 2.05%.

On fixed rate Cash Isas, the Post Office Money pays 1.41% for one-year and Aldermore Bank 1.65% for two.

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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These fised rate ISA rates

These fised rate ISA rates are criminal. Instead of paying tax to the Government. You are paying a tax to these Banks to refill their coffers. Should not be allowed

I started a ISA in June last

I started a ISA in June last year. Do I have to wait until June before I can start a 18-19 ISA

I started a cash ISA in June

I started a cash ISA in June 2017, do I have to wait for the mature date before I can take out a 2018 ISA. Thnks