Itís good news all round for savers at the moment as rates have continued to slowly but steadily increase over the last couple of weeks. Both Tesco and BM Savings are now offering savings accounts paying interest at 1.6%, though the deals differ somewhat in terms of what happens to that rate after the first year.
BM Savingsí 1.6% deal includes a 1.35% 12 month bonus, meaning that after the first year, the rate drops down to just 0.25%. Tescoís deal, on the other hand, includes a 12 month bonus of 0.85%, so your rate drops down to the somewhat higher 0.75% after a year.
Both of these new deals are topped by the French RCI Bank, who, with their 1.65% interest saver that includes no bonus, top the market currently for savings accounts. With this account though, you are covered by the European deposit protection scheme, which offers slightly less protection than its UK equivalent, though not by much.
ISAs rates have also improved, with the Post Office increasing interest on their Online ISA to match Virgin Moneyís 1.51%. The Post Officeís ISA includes a 12 month bonus of 0.86% though, while Virgin Moneyís includes no bonus and so stays at 1.51% throughout but limits account holders to a maximum of three withdrawals a year.
Make them most of your money by comparing savings accounts & Cash ISAs with MoneyExpert.