Easy-access cash Isa rates continue to fall for new savers, with the latest cuts coming from Nationwide and Virgin Money. Nationwide has cut its rate to 1.25 per cent and Virgin to 1.4 per cent.
The top deal comes from BM Savings at 1.55 per cent including a bonus for the first year, at which point the rate tumbles to 0.5 per cent.
The top rate without an initial bonus is on offer from National Savings & Investments at 1.5 per cent, but you cannot transfer your existing cash Isas into this account. GE Capital and West Bromwich Building Society also pay 1.5 per cent and accept transfers.
On fixed-rate deals you can earn marginally more, at 1.65 per cent for one year with Tesco and Aldermore banks. For two years Aldermore Bank, Barclays and AA Savings (part of Halifax) all pay 2 per cent. Barclays lets you take money out three times during the term.
On taxable accounts, AA Savings has introduced a new version of its easy-access Internet Extra account paying 1.4 per cent before tax (1.12 per cent after) to new savers. The rate is boosted by a 0.9 (0.72) percentage point bonus for a year.
It joins other top payers - all of which either come with a short-term bonus or restrict the number of times you take money out of your account each year.
These include Coventry BS PostSave Easy Access, Britannia Select Saver Issue 6, along with two accounts, Easy Saver Plus and WebSaver Limited Access, from West Bromwich Building Society. The top easy-access account with no bonus or withdrawal restrictions is Sainsbury’s Bank eSaver Special at 1.35 per cent (1.08 per cent).
The best rate on one-year fixed rate bonds comes from Investec Bank at 1.95 per cent (1.56 per cent), followed by Kent Reliance at 1.85 per cent (1.48 per cent).
For two years you can earn 2.35 per cent (1.84 per cent) with Investec or, for three years, 2.75 per cent (2.2 per cent) with Shawbrook Bank.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
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