Savers need to act quickly to take advantage of the best rates now available. Here’s a round-up of August’s best savings deals.
Rates on one-year fixed-rate bonds have edged up, with several providers including Atom, Wyelands and Investec banks, paying 2.05% fixed for 12 months.
But top rates do not stay around long. Last week, Wyelands Bank launched a one-year bond at 2.15% and Family BS an equivalent at 2.11%. Both were on sale for just a few days before being withdrawn from the market.
Rates on easy-access accounts have yet to move up following the Bank of England’s 0.25% base rate rise to 0.75% at the start of the month. The top easy-access rate is still 1.4% from Coventry Building Society on its Limited Access Saver 2. 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 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%.
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 two withdrawals a year.
The top rate with no withdrawal restrictions is 1.31% from Paragon’s Limited Edition Easy Access Cash Isa. Shawbrook Bank Easy Access Cash Isa 4 pays a whisker less at 1.3%.
On one-year fixed-rate Cash Isas, Bank of Cyprus pays 1.54%. You can also earn 1.5% with Coventry Building Society if you tie your money up until the end of November next year rather for just 12 months.
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.