Savings update: top-paying easy-access account comes with a sting in the tail

10 May 2018

Bank of Cyprus UK has upped the rate on its online easy-access account to 1.31%.

It puts it just ahead of Kent Reliance Easy Access and RCI Bank’s Freedom Account, both paying 1.3%.

But there’s a sting in the tail, as the Bank of Cyprus UK account comes with an initial bonus which lasts for 12 months before the rate drops to 0.85%.

Coventry Building Society has launched an online easy-access account at a near top-paying 1.25%, joining Paragon Bank and Shawbrook Bank.

In the high street, Yorkshire Building Society Single Access Saver pays 1.25%, but you are limited to making withdrawals on just one day a year.

On taxable fixed-rate bonds the best one-year rates come from Paragon at 1.86% and Hodge Bank at 1.85%, while Oaknorth Bank pays 1.95% for 18 months.  For two years, the top rate is 2.16% from Secure Trust Bank.

On tax-free cash Isas, Coventry Building Society, Paragon and Shawbrook Bank pay 1.25% on their easy-access accounts. On fixed-rate cash Isas, Hodge Bank pays a top 1.5% for one year while Kent Reliance pay the best rate of 1.68% for two. 

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 has found there are savings accounts that currently beat inflation.

This article was first written for our sister magazine Money Observer.

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