Savings update: NS&I announces Isa rate cut

17 July 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 July 2018.

National Savings and Investments (NS&I) has announced it will cut the rate on its easy-access Direct Isa from 1% to 0.75% from September. The top rate on easy-access Isa accounts comes from Paragon, which has relaunched its Limited Edition Easy Access Cash Isa at 1.31%. Shawbrook Bank and Virgin Money pay 1.3%, but Virgin limits you to making two withdrawals a year from your account.   

Coventry Building Society has launched a fixed-rate Isa paying 1.5% which runs until the end of November next year. Bank of Cyprus pays 1.52% fixed for a year, while Paragon and Ford Money both pay 1.45%. The top two-year rate is 1.7% from Shawbrook Bank.

On ordinary easy-access accounts BM Savings new Internet Saver pays 1.35%, but it comes with a 12-month bonus. After a year, your rate drops to 0.2%. Coventry Building Society Limited Access Saver also pays 1.35% including a 0.35 percentage point bonus for 12 months. It also limits you to making three free withdrawals from your account.

The top rate with no bonus and no withdrawal restrictions comes from Paragon Limited Edition Easy Access account at 1.31%. RCI Bank and Shawbrook Bank follow close behind at 1.3%. AA also pays 1.3% on its Member Saver account to new applicants, but the account is only available to those who are members of the organisation.

On fixe-rate bonds you can earn 1.79% with Atom Bank for six months or 2.05% for one year. OakNorth Bank pays 1.96% and ICICI Bank 1.95% for one year. For two years the top rate is 2.2% from BM Savings, part of the Lloyds Banking Group.

Savings accounts to beat inflation

Moneywise has found there are 15 savings accounts that currently beat inflation, as well as five regular savings accounts and two current accounts (updated monthly after latest inflation figures).

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

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