Savings update: NS&I and Santander raise Isa rates

6 March 2019

National Savings and Investments has raised the rate on its Direct Isa by 0.15 percentage points to 0.9% for both new and existing customers.

Meanwhile, Santander is the first large bank to offer a competitive cash Isa to savers. Its online easy-access eISA pays a top 1.5% to those who have a Select or World 123 account with the bank. 

Otherwise, the rate is a lower at 1.1%, which is still a competitive rate from one of the big banks. The rate includes a bonus paid for the first 12 months.

Non-Santander customers will do better with smaller banks. Virgin Money pays 1.45% on its Double Take E-Isa, but limits you to two withdrawals a year.  

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

On fixed-rate cash Isas, Charter Savings Bank has raised its rate so that it now pays a top 1.75% for one year, closely followed by Shawbrook Bank at 1.74%, and Cynergy Bank at 1.73%.

For two years, Charter Savings Bank pays a top 1.95%. Santander’s new account pays 1.9% for two years to both its Select and World 123 customers.

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

Goldman Sachs Marcus account and Cynergy Bank both offer a higher rate of 1.5%, but both banks pay a bonus for the first year. With Marcus, it’s 0.15 percentage points, and with Cynergy it’s 0.5 points.

Virgin Money also pays 1.5%, but it limits you to two withdrawals a year from the Double Take E-Saver account.  

On fixed-rate bonds, the top one-year rates have edged down slightly to 1.95% from 2% last week. The top 1.95% is available from Charter Savings and OakNorth banks.

Charter Savings Bank pays 2.1% fixed for 18 months, while you can earn 2.28% for two years with OakNorth.

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