Savings update: Atom Bank pays over 2% for first time in two years

12 June 2018
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With interest rates slowly back on the rise, here are some of the best savings accounts and Isa accounts on offer in June 2018.

Atom Bank has raised the rate for new savers in its one-year fixed-rate bond to 2.05%. It is the first time for more than two years that providers have paid over the 2% mark. Other good deals include OakNorth at 1.87%, Masthaven and Paragon at 1.86% and Charter Savings Bank at 1.81%

On easy-access accounts, Paragon’s Limited Edition Easy Access account, at 1.31%, offers the best rate, just ahead of Shawbrook and RCI banks at 1.3%. Please note RCI Bank is covered by the French not British deposit insurance scheme. Virgin Money Double Take E-Saver and Sainsbury’s Bank Defined Access accounts also pay 1.3%, but they limit the number of withdrawals you can make from your account each year.   

Skipton Building Society Super Tracker Cash Isa pays a lower 1.02%, but it guarantees to pay a fixed 0.52 percentage points over base rate until June 2020. It limits you to two withdrawals a year, but you know you will benefit in full from any base rate rise. Following the last 0.25% rise in November, many providers passed on much less to savers. Skipton also offers an easy-access savings version of the account. 

The top easy-access rate is 1.31% from Paragon Limited Edition Cash Isa with no withdrawal restrictions. Shawbrook Bank follows close behind with 1.3%.

On fixed-rate Cash Isas, Charter Savings Bank tops the table with 1.52%, followed by Paragon at 1.5%. The top rate for two years is 1.69% from Charter Savings Bank followed by 1.65% from Aldermore, Ford Money and Sainsbury’s banks. 

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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