Interactive Investor

Savings update: Virgin Money and West Brom match Goldman's 1.5%

11th December 2018 10:23

Stephen Little from interactive investor

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Two months after Goldman Sachs launched its 1.5% Marcus account competition in the savings market is fierce.

RCI Bank has raised the rate on its easy-access Freedom account to 1.42%. The rate applies to both new and existing accounts.

The move puts the French-owned bank at the top of the best-buy tables for accounts that have no withdrawal restrictions and no bonuses. Just remember RCI Bank deposits are covered by the French deposit insurance scheme, not the FSCS. 

Other providers pay slightly more. The top rate of 1.5% is available from Virgin Money, Marcus at Goldman Sachs, and West Bromwich Building Society.

However, both the Virgin Double Take E-Saver and West Bromwich Double Access 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.

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On fixed-rate bonds, the top one-year rate is 2.05%, which is on offer from Atom, Tandem and Investec banks, while Masthaven Bank and Market Harborough Building Society follow closely behind with 2.02%. Metro Bank pays 2.25% to those willing to tie up their money for 18 months.

On fixed-rate tax-free cash Isas, both Aldermore and Shawbrook banks are at the top of the best-buy tables. Shawbrook pays 1.66% and Aldermore 1.65% for one year. For two years, they pay 1.86% and 1.85%, respectively.

On easy-access cash Isas Paragon’s new account pays 1.35%. Virgin Money pays a higher 1.45% on its Double Take E-Isa, but you are limited to two withdrawals a year.

This article was originally published in our sister magazine Moneywise, 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.

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