Savings update: new banks lead the way as fixed rate savings already edge up

8 August 2018

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

Savers can expect to wait until the end of this month or the start of September before they see any benefit on easy-access savings, following last week’s Bank of England base rate rise to 0.75%.  Providers tend to hold fire on better rates for a few weeks after any change in the official rate of interest.

The top easy-access rate is still 1.4% from Coventry Building Society on its Limited Access Saver.  It comes with a 0.4 percentage point bonus for the first year and limits you to making three free withdrawals every 12 months. The society has said it will announce any changes in its savings rates by 23 August, to come into effect on 1 September.

BM Savings Internet Saver pays 1.35%.  There are no withdrawal restrictions, but it comes with a 12-month bonus of 1.15%.  After that your rate plummets to just 0.2%.

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%.  AA Members Saver, available to members of the motoring organisation only, also pays 1.3%.

Fixed rate bonds have already started to edge up with new banks leading the way. Oaknorth Bank pays 1.8% fixed for six months, while Wyelands Bank pays the best one-year deal at 2.15%, followed closely by Atom at 2.05% and Charter Savings Bank at 2.01%.  For two years, leaders include Wyelands Bank’s and Investec Bank paying 2.25% with BM Savings, Hampshire Trust Bank and Paragon all paying 2.2%.

On easy-access Cash Isas the best rate comes from Virgin Money’s Double Take E-Isa at 1.35%, but you are limited to making two withdrawals a year. The top rate with no withdrawal restrictions is 1.31% from Paragon’s Limited Edition Easy Access Cash IsaShawbrook Bank Easy Access Cash Isa 4 pays a whisker less, at 1.3%.

On fixed rate Cash Isas, Bank of Cyprus and Virgin Money pay 1.46% for a year with Paragon and Ford Money both at 1.45%. You can earn a slightly higher 1.5% with Coventry Building Society if you tie your money up until the end of November next year rather for just 12 months.

The top two-year rate is 1.7% from Shawbrook 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)

Why is there no mention of the Nationwide Flex current account that pays 5%, with a linked 5% regular E-saver. Or the First Direct linked E-saver that also yields 5%. There's a few other current accounts and linked savers that pay well over 2.5%Even Virgin Money has a regular e-Saver at 2.35% that has no conditions and is open to anyone, even non-customers.

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