Challenger banks continue to nudge rates up on easy-access accounts.
On taxable easy-access accounts AA Easy Saver (Issue 6) is the top rate at 1.32%. But once again there is a bonus - 1.12 percentage points - for the first 12 months after which your rate tumbles to 0.2%. The best rate that does not include a bonus is 1.3% on the RCI Bank Freedom Account, although remember your savings here are protected by the French deposit protection scheme rather than the UK’s Financial Services Compensation Scheme (FSCS).
The best FSCS-protected account is the Nottingham Building Society eSaver at 1.25%.
Challenger banks also dominate the fixed-rate bond best deals. Aldermore Bank, Atom Bank, Ford Money and Investec Bank all pay 1.8% fixed for one year. For two years, the best deal comes from Family Building Society at 2.06%. The rate is not fixed by will rise in line with any increase in base rate over the term. Union Bank of India (UK) pays a fixed 2.05% 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 accounts that currently beat inflation.
This article was written for our sister magazine Money Observer.