Interactive Investor

Savings update: Tesco Bank ups Online Saver rate but RCI still top

20th June 2016 12:37

Sylvia Morris from interactive investor

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Tesco Bank has raised the rate on its Online Saver to 1.27 per cent before tax (1.02 per cent after tax) for new savers. The rate includes a bonus payable for the first year after which it drops to 0.75 per cent (0.6 per cent).

French-owned RCI Bank pays a higher 1.45 per cent (1.16 per cent) with no bonus, while Shawbrook Bank pays 1.25 per cent (1 per cent). Both accounts are only available online.

At Virgin Money the rate is 1.26 per cent (1.01 per cent) on its Defined Access Saver, available online, through the post or in its branches. But you are limited to making three withdrawals a year on it.

On fixed rate bonds Charter Savings Bank pays a top one-year rate at 1.66 per cent (1.33 per cent), available online. At French-owned RCI Bank the rate is a whisker less at 1.65 per cent (1.32 per cent).

OTHER TOP RATES

The top rate on the high street is 1.25 per cent (1 per cent) from Leeds Building Society while Tesco pays 1.4 per cent (1.12 per cent) and United Trust 1.5 per cent (1.2 per cent) on telephone or postal accounts.

If you are willing to tie your money up for 18 months, Charter Savings Bank pays 1.7 per cent (1.36 per cent) while for two years you can earn 1.9 per cent (1.52 per cent) from RCI Bank, 1.85 per cent (1.48 per cent) at United Trust Bank or 1.8 per cent (1.44 per cent) with Tesco Bank.

The top fixed-rate cash Isas include Leeds Building Society at 1.25 per cent tax-free for one year while Shawbrook Bank, Kent Reliance and Aldermore Bank all pay 1.2 per cent. For two years the best deal is 1.4 per cent from Shawbrook Bank, Leeds Building Society and Virgin Money.

On easy-access cash Isas Virgin Defined Access Isa pays 1.26 per cent but you are limited to making three withdrawals a year. Coventry Building Society's Easy Access Isa 3 pays 1.3 per cent but you can't transfer your existing cash Isas into this account.

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

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