Interactive Investor

FirstSave provides glimmer of hope in bleak savings market

24th February 2014 16:21

Sylvia Morris from interactive investor

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After a week of banks and building societies closing their top-rate fixed rate bonds, FirstSave has provided a glimmer of hope.It has launched a one-year fixed rate deal at 1.9 per cent before tax (1.52 per cent after tax) today ( 24 Feb)

Other top deals include National Counties Building Society at 1.76 per cent (1.41 per cent) and Leeds BS, Investec Bank and Kent Reliance all at 1.75 per cent (1.4 per cent)

On two-year deals the new FirstSave deal pays 2.35 per cent (1.88 per cent) while you earn 2.21 per cent (1.77 per cent) with National Counties at 1.77 pc (2.1 pc) or 2.1 per cent (1.68 per cent) with State Bank of India and Investec Bank.

On fixed-rate cash Isas, where interest is tax-free, the best one-year deals come from Britannia at 1.85 per cent and Kent Reliance at 1.8 per cent.

The top two-year fixed-rate rate is 2.1 per cent with National Counties while Britannia, part of the Co-op Bank, pays 2.05 per cent and Leeds Building Society 2.05 per cent.

Coventry Building Society pays 2.75 per cent fixed until 31 May, 2017 but you can only put in this year’s cash Isa allowance of £5,760 into the account. It does not accept transfers from other providers.

On taxable easy-access accounts the top rate of 1.5 per cent (1.2 per cent) from Britannia’s Select Saver 4, but you are limited to four withdrawals a year, available through branches or the post. The top internet-based deal is 1.36 per cent (1.09 per cent) with National Counties with no withdrawal restrictions.

On easy-access cash Isas you can earn 1.75 per cent with Britannia Select Isa 2 – with a limit of two withdrawals a year or 1.65 per cent from National Counties and Metro Bank.

This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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