Savings update: Virgin Money raises top-paying cash Isa rate to 1.51%
1st February 2016 15:30
by Sylvia Morris from interactive investor
Savings rates continue to shift this week with falls outweighing any rises.
Virgin Money has raised the rate for its easy-access cash Isa to a top 1.51 per cent. The new tax-free deal applies to those already in its Defined Access Isa Issue 4, as well as to those opening an account now. You can only make three withdrawals a year from your account.
The move puts it just ahead of Coventry Building Society, which pays 1.5 per cent on its Easy Access Isa. Both are available online, through branches, by post or over the telephone and accept transfers from other providers.
On fixed rate cash Isas the best one-year deal comes from Leeds Building Society and Virgin Money, both at 1.65 per cent. For two years, Kent Reliance, Leeds Building Society, Principality Building Society and Shawbrook Bank all pay 1.85 per cent.
EASY-ACCESS ACCOUNTS
On easy-access accounts Paragon Bank has closed its Limited Edition Easy Access 2 at 1.46 per cent before tax (1.17 per cent after) to new savers.
The best deal is 1.65 per cent (1.32 per cent) from RCI Bank. With this French-owned bank your money is covered by the European compensation scheme which gives €100,000 (around £76,000), rather than by the UK scheme.
The next best rate comes from Shawbrook Bank 1.45 per cent (1.16 per cent). At Virgin Money the rate is 1.41 per cent (1.13 per cent), but you are limited to making three withdrawals a year.
On taxable bonds, the top one-year fixed rate deal remains at 2.06 per cent before tax (1.65 per cent after) from French-owned RCI Bank. Charter Savings Bank pays 1.85 per cent (1.48 per cent).
Over two years, RCI pays 2.35 per cent (1.88 per cent) and Close Brothers 2.05 per cent (1.64 per cent). Shawbrook Bank, Charter Savings Bank and Kent Reliance all pay 2 per cent.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
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