Average rates are rising across the board for first time in seven years.
Ford Money has upped the rate on its easy-access online account, Flexible Saver, to 1.42%. The bank says that when it changes its rates, the new rate applies to both new and existing savers.
RCI Bank also pays its new, higher 1.42% rate to all savers holding its easy-access Freedom savings account.
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Most banks offer their new rate only to savers opening an account following the announcement, while loyal savers remain on the old rate.
The top rate of 1.5% on easy-access accounts comes from Virgin Money’s Double Take E-Saver, Goldman Sachs’ Marcus online saver account and West Bromwich Building Society’s Double Access postal and phone account.
However, both the Virgin and West Bromwich accounts limit you to two withdrawals a year, while the Marcus rate includes a 0.15 percentage point bonus for the first year that you hold the account.
On fixed-rate bonds, the top one-year rate is 2.05% from Atom, Masthaven, Tandem and Investec banks, while Market Harborough Building Society follows closely behind with 2.02% and Charter Savings Bank at 2.01%. Metro Bank pays 2.25% to those savers who are willing to tie up their money for 18 months.
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On fixed-rate tax-free cash Isas, Shawbrook Bank pays a top 1.66% for one year and Aldermore Bank 1.65%. For two years, they pay 1.86% and 1.85%, respectively.
On easy-access cash Isas, Paragon’s new account pays 1.35%, while Charter Savings Bank and Sainsbury’s Bank both offer 1.31%. Virgin Money pays a higher 1.45% on its Double Take E-Isa, but it limits you to two withdrawals a year.
This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.
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