Savings update: Yorkshire BS launches top-paying high-street deal

Published by Sylvia Morris on 03 November 2015.
Last updated on 03 November 2015

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Yorkshire Building Society has launched a one-year fixed-rate bond paying 2.05 per cent before tax (1.64 per cent after), available online and through its branches. It is also available through its offshoots, Barnsley, Chelsea and Norwich & Peterborough building societies.

This rate makes it the top payer in the high street and just slightly behind online bonds from Charter Savings Bank at 2.07 per cent (1.66 per cent) and Firstsave at 2.06 per cent (1.65 per cent). The Yorkshire deal also offers you the chance to take monthly interest at 2.03 per cent (1.62 per cent).

For two years you can earn a higher 2.35 per cent (1.88 per cent) with Aldermore, Harrods or RCI banks.

Easy-access accounts and cash Isas

On easy-access taxable accounts the best rate is 1.65 per cent (1.32 per cent after tax) from RCI Bank Freedom Account. With this bank you are not covered by the UK compensation scheme. If the bank goes bust, you claim from the European scheme where the maximum amount is €100,000 (around £72,000).

West Bromwich WebSave Easy Saver pays 1.55 per cent (1.25 per cent) and Virgin Money Defined Access Saver 1.51 per cent (1.21 per cent). With the Virgin account you are limited to making three withdrawals a year.

On tax-free cash Isas, the top easy access account comes from Post Office Online Cash Isa, at 1.51 per cent including a 0.86 percentage point bonus for the first 12 months.

Virgin Money Defined Access Isa is a slightly better rate at 1.56 per cent and there is no bonus on this account, but it limits you to making three withdrawals a year.

The best deal with no bonus and no withdrawal restrictions comes from Coventry Building Society, which raised the rate for both new and existing savers to 1.5 per cent last week. It will also accept transfers from other providers.

Top fixed-rate cash Isa deals come from Virgin Money at 1.81 per cent and Shawbrook Bank at 1.8 per cent fixed for a year. For two years Virgin Money pays 2.06 per cent.