Interactive Investor

Savings update: Virgin Money launches market-leading Isa

24th July 2018 09:58

Sylvia Morris from interactive investor

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With interest rates slowly back on the rise, here are some of the best savings accounts and Isa accounts on offer in July 2018.

Virgin Money has launched a new issue of its limited-access Double Take E-Isa at a top rate of 1.35%. Its previous version, issue 1, paid a slightly lower 1.3%. While it is the best rate on the market, savers are restricted to making two withdrawals each year.

The top rate with no withdrawal restrictions comes from Paragon at 1.31% on its Limited Edition Easy Access Cash Isa. Shawbrook Bank Easy Access Cash Isa 4 pays a whisker less at 1.3%. 

On fixed rate Cash Isas, Bank of Cyprus pays 1.52% for a year while Coventry Building Society pays 1.5% if you tie your money up until the end of November 2019 – slightly longer than just 12 months. Paragon Bank and Ford Money are next in line at 1.45% and the top two-year rates are 1.7% from Shawbrook Bank and 1.69% from Charter Savings Bank.

Top savings accounts

On ordinary easy-access accounts, BM Savings Internet Saver pays 1.35% but it comes with a 12-month bonus. After a year, the rate drops to 0.2%.

Coventry Building Society Limited Access Saver also pays 1.35% including a 0.35% bonus for 12 months but it limits you to making three free withdrawals from your account. Last week, Tesco Bank raised the rate on its Internet Saver to 1.34%, including a bonus for a year.

The top rate with no bonus and no withdrawal restrictions comes from Paragon Limited Edition Easy Access account at 1.31%. RCI Bank Freedom Account and Shawbrook Bank Easy Access 12 follow close behind at 1.3%. The AA also pays new applicants 1.3% on its Members Savers account but it’s only available to those who are members of the motoring organisation

On fixed rate bonds, you can earn 1.79% with Atom Bank for six months or 2.05% for one year. Investec Bank has raised the rate on its one-year fixed rate bond to 2% while OakNorth Bank pays 1.96%.

You can earn 2.01% from OakNorth or 2.05% from Investec Bank if you are willing to tie your money up for 18 months. 

For two years, the top 2.2% rate comes from both BM Savings, part of the Lloyds Banking Group, and Investec Bank.

Savings accounts to beat inflation

Moneywise has found there are now 22 savings accounts that currently beat inflation, as well as five regular savings accounts and two current accounts (updated monthly after the latest inflation figures are announced).

This article was first written for our sister magazine Money Observer.

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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