Savings update: Tesco Bank raises Instant Access Cash Isa rate to 1.44%

26 February 2019

Tesco Bank has raised the rate on its Instant Access Cash Isa to 1.44%.

The rate includes a 0.79 percentage point bonus for the first year that you hold the account.

Virgin Money’s Double Take E-Isa at 1.45% pays a whisker more, but you can make only two withdrawals each year.   

The highest rate with no withdrawal restrictions or bonus is 1.44% from OakNorth Bank, followed by 1.43% from Shawbrook Bank.

On fixed-rate cash Isas, Shawbrook Bank pays 1.74% for one year, and Cynergy Bank 1.73%.

The next best is Coventry Building Society at 1.7%, although you need to be prepared to tie up your money until 31 May 2020 rather than for just 12 months.

Coventry also pays the best two-year rate at 1.9%, followed by Charter Savings Bank at 1.87%.

On easy-access taxable accounts, Shawbrook pays 1.43% and both RCI Bank and Ford Money 1.42%. 

The Marcus account by Goldman Sachs pays a higher rat of 1.5%, but it includes a 0.15 percentage point bonus for the first year.

The Family Building Society pays 1.51% on its Premium Saver account, but the minimum balance is £15,000, and you can’t add any money to your account after 8 March. 

On fixed-rate bonds, the top one-year rate is 2% from Tandem Bank, followed by 1.95% from both OakNorth Bank and Atom. OakNorth pays 2.07% for 18 months, while Charter Savings Bank pays 2%.

If you are willing to tie up your money for two years, you can earn 2.35% with OakNorth, 2.3% at Tandem Bank, and 2.25% through Aldermore.

This article first appeared on our sister website Money Observer

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