Savings update: Virgin and Halifax offer top rates for savers
24th August 2015 16:41
by Sylvia Morris from interactive investor
Halifax has raised the rate on its one-year fixed rate cash Isa for new savers to a tax-free 1.6 per cent. The move puts it among the top rates on the high street, just behind Virgin Money's 1.71 per cent and Nationwide at 1.65 per cent. If you are willing to run your account over the internet, then Shawbrook Bank pays a higher 1.75 per cent.
For two years Coventry Building Society pays 2.05 per cent fixed until 30 November 2017, while Halifax, Shawbrook and Virgin Money along with Skipton Building Society all pay 2 per cent.
On easy-access cash Isas, National Savings & Investment Direct Isa pays a top 1.5 per cent. But you cannot transfer your existing cash Isas into this account.
The best deals for transfers include Nationwide Instant Isa Saver issue 3 at 1.4 per cent. Virgin Money pays a higher 1.51 per cent on its Defined Access Isa, but you are limited to making three withdrawals a year from your capital.
FIXED-RATE BONDS AND EASY ACCESS ACCOUNTS
On taxable fixed-rate bonds, top deals include Charter Savings Bank at 2.06 per cent (1.65 per cent after tax) and Kent Reliance at 2.02 per cent (1.62 per cent), both for 12 months. For two years you can earn 2.38 per cent (1.9 per cent) with Secure Trust Bank or 2.35 per cent (1.88 per cent) with Aldermore Bank.
On easy access accounts French bank RCI, part of the Renault group, pays 1.65 per cent (1.32 per cent) on its Freedom Account. With this account you are protected by the European deposit scheme, not the UK equivalent. The European scheme gives you €100,000 (around £73,485) cover if the bank goes bust.
BM Savings, part of Halifax, pays 1.6 per cent (1.28 per cent) on its Online Extra issue 18, but this comes with a bonus for the first year, after which the rate drops to 0.5 per cent (0.4 per cent). Kent Reliance High Balance Easy Access account issue 2 pays 1.55 per cent (1.24 per cent) on a minimum £20,000.
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.