Cash Isa rates continue to edge up.
Virgin Money has launched its Easy Access Cash Isa issue 21, paying a top rate of 1.21%. It is available online, through its branches and by post and accepts transfers from other providers.
On fixed rate cash Isas, Leeds Building Society and Post Office both pay 1.45% for one year, followed by Virgin Money, which has a rate of 1.41%. The best two-year fixed rate is 1.65% from both Aldermore Bank and Leeds Building Society.
Easy-access rates on standard savings accounts are also improving slightly. For instance, online bank Ford Money has raised the rate on its Flexible Saver to 1.22% for both new and existing savers.
Elsewhere, Tesco Bank’s easy-access rate is now 1.3% for new savers – but this rate includes a bonus payable for 12 months after which the rate drops to 0.55%. Post Office Online Saver 28 also pays 1.3% but only for a year, after which the rate tumbles currently to 0.25%.
RCI Bank’s online Freedom account continues to pay a top 1.3% with no bonus. With this account your money is covered up to €100,000 (around £88,000) under the French compensation scheme rather than the UK Financial Services Compensation Scheme.
The top one-year fixed rate deal is 1.95% from Atom Bank, an account you run through an app on your smartphone or tablet.
For two years Atom Bank pays 2.1%. Family Building Society pays the next best rate for two years at 2.06% on its Market Tracker bond. The rate is not fixed, but linked to base rate. If it rises, then so will your return.
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.