Savings rates are on the rise: here are the top paying accounts

More easy-access deals are paying 1 per cent or more on online accounts. 

Ford Money joined in last week when it raised the rate on its Flexible Saver to 1.07 per cent.  Other top deals include Ulster Bank at 1.25 per cent, RCI Bank at 1.11 per cent, Shawbrook Bank at 1.05 per cent and AA Savings Member Saver – exclusively available to AA members – at 1.03 per cent. 

On fixed-rate bonds the top rate for one year is 1.86 per cent from OakNorth Bank followed by Paragon Bank at 1.85 per cent. 

For two years Paragon pays a top 2.05 per cent and OakNorth 2.01 per cent. 

On tax-free cash Isas, Ford Money has raised its rate to 1 per cent for both new and existing savers while Sainsbury’s Bank pays 1.01 per cent.     

Virgin Money offers 1.05 per cent but you are restricted to making three withdrawals a year on your account to earn this rate. 

The top one-year fixed cash Isa rate is 1.2 per cent from Paragon Bank followed by Charter Savings Bank and Bank of Cyprus both at 1.16 per cent.  For two years Virgin Money and Progressive Building Society both pay 1.3 per cent.  All accept transfers from other providers. 

- Savers clueless about what their banks do with their money

To beat inflation compromises need to be made as all of the small number of regular savings accounts that pay more than inflation require savers to have a current account with the provider.  Our sister publication Moneywise regularly keeps tabs on the savings market has found there are nine accounts that currently beat inflation.

Subscribe to Money Observer magazine



Post new comment

The content of this field is kept private and will not be shown publicly.
By submitting this form, you accept the Mollom privacy policy.