Cash Isa rates are starting to creep up. Leeds Building Society has a new version of its Online Access Isa, which goes into joint first place in the Cash Isa savings tables, paying 1.16%. It is joined by Paragon Bank, with its Limited Issue Easy Access Isa also paying 1.16%.
AA Savings Easy Access Cash Isa also pays 1.16%, but the rate includes an initial bonus which runs out after a year when the rate drops to a lowly 0.2%.
On fixed rate cash Isas Leeds Building Society is now offering 1.45% for one year, followed by Virgin Money, which is paying 1.41%. For two years Aldermore Bank and Leeds Building Society lead the way, paying 1.65%.
On taxable accounts the top easy-access rate is 1.32% from AA Savings. The rate is boosted by an initial bonus of 1.12 percentage points payable for the first twelve months only after which the rate drops to 0.2%.
Elsewhere, Tesco Bank has raised its rate on its Internet Saver for new customers to 1.3%, including a one-year bonus after which the rate drops to 0.55%. Post Office Money also pays 1.3 percent – including a 1.05% bonus for a year. RCI Bank pays 1.3% on its Freedom Account with no bonus boosting the rate, but remember this account is covered by the French deposit protection scheme, not the UK’s FSCS.
You can earn 1.9% fixed for one year with app-based Atom Bank or 1.8% from internet banks Aldermore, Investec and OakNorth.
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.