Savings update: The week’s top interest rates

28 February 2018

Here are this week's best savings rates. 

Ford Money has raised the rate on its easy-access cash Isa to 1.11%.  The rise applies to existing savers and well as those opening an account now.  

This does not put Ford Money top of the charts as Leeds BS has a Limited Issue Online Access Isa that pays a higher 1.21% to new savers. But there’s a sting in the tail, as the account only runs until 30 April next year after which you are likely to earn a lower rate.  

Elsewhere, other top deals on these tax-free accounts include Paragon Bank Limited Edition Easy Access Cash Isa and Virgin Money Easy Access Cash Isa issue 22, both at 1.16%. 

You can earn a higher 1.46% fixed for one year with the latest account from Charter Savings Bank or OakNorth Bank.  For two years the best rate is now 1.67% from both Charter Savings Bank and Paragon Bank.  

On taxable easy-access accounts ICICI Bank Hi-Save Bonus Saver currently pays a top 1.35%.  But the rate includes a 0.7 percentage point bonus payable until the end of January next year.    

Top accounts with no bonus include French-owned RCI Bank Freedom account at 1.3%, although this is protected by the French deposit protection scheme, rather than the UK’s FSCS.  Other top accounts are the Ford Money Flexible Saver at 1.22% and Paragon Bank 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%, followed by Investec Bank at 1.9% – albeit with a minimum balance of £25,000. The top two-year rate come from Atom Bank at 2.1% followed by OakNorth Bank and PCF Bank, both at 2.09%

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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