Savings update: watch out for introductory bonus rates

Published by Sylvia Morris on 19 June 2018.
Last updated on 19 June 2018

Savings update: watch out for introductory bonus rates

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

Coventry BS has launched its Limited Access Saver account paying 1.3%, while Tesco Bank has also pushed its Internet Saver rate for new customers up to the same level.  The Coventry account includes a 0.3 percentage point bonus, which only lasts for 12 months, and it limits you to making three free withdrawals a year. Tesco Bank has no withdrawal limits but also includes a bonus – of 0.75 points for a year.

If you want easy access Shawbrook Bank and RCI Bank also both pay a top 1.3% with no withdrawal restrictions and no bonus which disappears after a year.

On fixed-rate accounts, Atom Bank pays a 2.05% for one year. Other good deals include Secure Trust Bank at 1.88% and OakNorth at 1.87%, along with Paragon and Masthaven banks at 1.86%. If you are willing to tie your money up for two years, you can earn 2.14% with Oaknorth and Secure Trust.

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 1.7% from Shawbrook Bank followed by 1.69% from Charter Savings Bank.

Shawbrook also pays the top rate of 1.3% on easy-access Cash Isas.

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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