Savings update: RCI Bank raises rates for new and existing savers

Published by Sylvia Morris on 24 October 2018.
Last updated on 24 October 2018

Easy-access accounts continue to edge upwards after the launch of Goldman Sachs’s Marcus savings account with its market-busting 1.5% interest rate.

French-owned RCI Bank raised the rate on its Freedom account to 1.37%. Unusually, the rate applies to savers already holding the account, as well as new customers.

Typically, when banks raise their rates, the new, higher rate applies only to new customers, while loyal savers are left on the old, lower rate.

Other good deals include Charter Savings Bank’s Easy Access account and Shawbrook’s Easy Access account, both offering 1.4% to new customers, while Paragon's Limited Edition Easy Access account pays 1.37%.

Tesco Bank has also upped the rate on its Internet Saver for new customers to 1.4%, but this deal includes a bonus and the rate falls to 0.55% after you have held the account for a year. 

The Marcus account also comes with a bonus of 0.15 percentage points for a year, but you can renew the bonus for another 12 months.

Virgin Money pays 1.42% to new savers on its Double Take E-Saver, but you are limited to making two withdrawals a year.

On fixed-rate bonds, OakNorth pays 1.8% for six months, while the top one-year rate is 2.03% from Shawbrook Bank, with OakNorth close behind at 2.02%.

Charter Savings Bank pays the top 18-month rate at 2.11%, while the best two-year rate is 2.29% from Shawbrook Bank.

On easy-access tax-free cash Isas, Leeds Building Society’s Limited Issue Online Access Isa pays 1.38%, but the account runs only until December next year.

Virgin Money Double Take E-Isa also pays 1.38%, although you are restricted to two withdrawals a year.

Paragon’s Limited Edition Cash Isa pays 1.37% with no withdrawal restrictions or end date.

On one-year fixed-rate cash Isas, Aldermore offers 1.6%, followed by Paragon at 1.55% and Charter Savings Bank and Bank of Cyprus UK both paying 1.54%.

The top two-year deals are 1.82% from Bank of Cyprus UK, or 1.81% from Charter Savings Bank.

This article first appeared on our sister site Money Observer.

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Considering that Shawbrook

Considering that Shawbrook Bank offers 2.29% over 2 years on a non-ISA account, why is it not possible to get 2%+ on a Cash ISA over a similar 18mth-2yr period? Why the discrimination? Anybody would think that financial institutions were awash with funds from another source and don't need retail savers funds.... Oh, hang on, they ARE - the Bank of England and its Quantitative Easing / Funds For Lending programmes of currency destruction....