Savings update: Virgin Money launches market-leading Isa

24 July 2018

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

Virgin Money has launched a new issue of its limited-access Double Take E-Isa at a top rate of 1.35%. Its previous version, issue 1, paid a slightly lower 1.3%. While it is the best rate on the market, savers are restricted to making two withdrawals each year.

The top rate with no withdrawal restrictions comes from Paragon at 1.31% on its Limited Edition Easy Access Cash Isa. Shawbrook Bank Easy Access Cash Isa 4 pays a whisker less at 1.3%. 

On fixed rate Cash Isas, Bank of Cyprus pays 1.52% for a year while Coventry Building Society pays 1.5% if you tie your money up until the end of November 2019 – slightly longer than just 12 months. Paragon Bank and Ford Money are next in line at 1.45% and the top two-year rates are 1.7% from Shawbrook Bank and 1.69% from Charter Savings Bank.

Top savings accounts

On ordinary easy-access accounts, BM Savings Internet Saver pays 1.35% but it comes with a 12-month bonus. After a year, the rate drops to 0.2%.

Coventry Building Society Limited Access Saver also pays 1.35% including a 0.35% bonus for 12 months but it limits you to making three free withdrawals from your account. Last week, Tesco Bank raised the rate on its Internet Saver to 1.34%, including a bonus for a year.

The top rate with no bonus and no withdrawal restrictions comes from Paragon Limited Edition Easy Access account at 1.31%. RCI Bank Freedom Account and Shawbrook Bank Easy Access 12 follow close behind at 1.3%. The AA also pays new applicants 1.3% on its Members Savers account but it’s only available to those who are members of the motoring organisation

On fixed rate bonds, you can earn 1.79% with Atom Bank for six months or 2.05% for one year. Investec Bank has raised the rate on its one-year fixed rate bond to 2% while OakNorth Bank pays 1.96%.

You can earn 2.01% from OakNorth or 2.05% from Investec Bank if you are willing to tie your money up for 18 months. 

For two years, the top 2.2% rate comes from both BM Savings, part of the Lloyds Banking Group, and Investec Bank.

Savings accounts to beat inflation

Moneywise has found there are now 22 savings accounts that currently beat inflation, as well as five regular savings accounts and two current accounts (updated monthly after the latest inflation figures are announced).

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


In reply to by anonymous_stub (not verified)

I note that you routinely do not publish my comments on the matter of savings rates. Is it a crime against the banking cabal (led by the BoE) to point out that savings rates are too low, that inflation is not being controlled as per the MPC's founding mandate and that the chief culprit for this dire situation is the drastic money supply inflation that has occurred since the BoE instituted practices such as Quantitative Easing and Funds for Lending, featherbedding the commercial Banks and separating them from any need to consider retail savers??Every time I see a headline in one of your articles, trumpeting a new market-leading rate offered by one provider or another, my heart rises for a nanosecond before I see that this new market-leading rate is still around 1.5%pa less than the rate of general inflation. I do not see the value in applauding what is still an appalling situation for cash savers. This erosion of the value of people's hard-earned savings will destroy lives - the Banks are destroying lives.

In reply to by anonymous_stub (not verified)

What is the point of 'saving' in any account that loses value? I have a Cash ISA coming up to maturity in a couple of months, after three-years on a fixed rate that has reduced the value of that chunk of money by approx 0.8%pa relative to inflation -and that rate was still much better than any of the rates on offer today. I am faced with losing 1% or more per annum relative to inflation if I transfer the funds to another Cash ISA and if anyone thinks that's pin money, then I invite them to consider the compound effect of year after year of their 'savings' being eroded by inflation. A decade of such losses to inflation would in itself force me to work an extra year of my life, simply from losing the equivalent of a year's cost of living. If financial institutions have any respect for cash savers (which they clearly don't presently), then the least they can do is to offer proper value. The Bank of England is the biggest criminal in this - interest rates must go up to restore the value of Sterling, encourage better financial stewardship and bring inflation back to the 2% target that their Monetary Policy Committee has now failed to meet for several years. Excessive money supply caused by the BoE printing money out of thin air (Qualtitative Easing / Funds For Lending) is what has ruined savings rates and this needs to end. There used to be a measure of money supply inflation (which back in saner days used to run very close to general inflation) - I bet it was quietly axed because that figure for the past decade would probably have been double-digits per annum. Failure to rectify matters nowadays will have terrible consequences for the future, when everybody suddenly realises that no government is 'good for' its debts and currencies collapse, never mind the ever-increasing national debt that will force taxes to increase simply to pay the interest on that debt. Future generations will damn the selfishness of the 'jam today' mentality of millennial society.

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