Savings update: Sainsbury’s Bank improves rate on limited access savings account
22nd May 2018 10:17
by Sylvia Morris from interactive investor
Rates on easy-access accounts continue to edge up. Bank of Cyprus UK has upped the rate on its online easy-access account to 1.32%. It puts it just ahead of Paragon’s new Limited Edition Easy Access account at 1.31%.
But bear in mind the Bank of Cyprus UK account comes with an initial bonus, which only lasts for 12 months. The rate then drops to 0.85%.
Elsewhere, Shawbrook Bank has also increased its easy-access account rate to 1.3% for new savers.
- Number of savings accounts that beat inflation trebles
In the high street, Yorkshire Building Society Single Access Saver pays 1.25%, but you are limited to making withdrawals on just one day a year. Alternatively, the Sainsbury’s Bank has increased its rate on its Defined Access Saver, which now offers 1.25% and allows up to three withdrawals a year – but you’ll need to make a minimum initial deposit of £1. However, bear in mind that if the number of withdrawals in 12 months exceeds three, the interest rate on the account will be lower.
Other top high street accounts with no withdrawal restrictions include RCI Bank at 1.3%NS Kent Reliance at 1.25%. Remember, though, that RCI Bank deposits are protected by the French deposit insurance scheme, not the Financial Services Compensation Scheme.
On taxable fixed-rate bonds, the best one-year rate come from Paragon at 1.86% with Atom, Tandem, Close Brothers, OakNorth and United Trust banks all paying 1.8%. For 18 months, you can earn 1.96% with Secure Trust Bank. It also pays the top two-year rate of 2.16%.
This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.
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