Savings update: The best rates in February 2018

6 February 2018

Rates on taxable easy-access are edging up.

ICICI Bank has raised its Hi-Save Bonus Saver rate to 1.35% for new savers. It includes a 0.7 percentage point bonus payable until the end of January next year. 

Next up, Tesco Bank Internet Saver pays 1.3% with a bonus paid for the first year after which it drops to its standard rate, currently 0.55%. Worse still, Post Office Online saver’s 1.3% tumbles to 0.25% after 12 months. 

Top accounts with no bonus include French-owned RCI Bank at 1.3%, Ford Money Flexible Saver at 1.22% and the new Paragon Bank has a new Limited Edition Easy Access account at 1.21%.

On taxable fixed rate bonds, the best one-year rate comes from Atom Bank at 1.95%.  You operate this account through its app on your smart phone or tablet.  Online Investec pays 1.85% and Secure Trust 1.81%.  The top two-year rates come from Atom Bank at 2.1% and Union Bank of India UK at 2.05%. 

On tax-free accounts, the best easy-access rate is 1.21% from the new Virgin Money Easy Access Cash Isa. You can earn a higher 1.45% fixed for one year with Paragon Money, Post Office Money and Leeds Building Society.  For two years the best rate is 1.66% from Virgin Money.

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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