What are the best savings and ISA accounts at the moment?
The Post Office is one of the top providers for savings accounts, offering 1.33%. However, this is only for the first year, after which the rate drops to 0.25%. The Coventry BS Limited Access Saver has a similar configuration, with a 1 year rate of 1.3% which drops down to 1% afterwards. There is an additional restriction, with only three withdrawals per year permitted, go over this and there is a fee of 50 days of interest.
A rate of 1.3% is also on offer from Shawbrook Bank and RCI Bank, without bonuses or restrictions.
Fixed rate accounts pay more, but are less convenient due to the fact that money can't be withdrawn without restriction. Atom bank offer 2.05% on their one year product. Secure Trust Bank, OakNorth and Masthaven Bank offer 1.88%, 1.87% and 1.86% respectively for the same time period. In terms of two year products, Secure Trust Bank offer 2.16%.
The one year fixed rate cash ISA tables are topped by Charter Savings Bank at 1.48%, with Ford Money and Paragon Bank close behind at 1.45%. Two year fixed rate ISAs at 1.7% and 1.69% are on offer from Shawbrook Bank and Charter Savings Bank respectively.
The top provider for easy access cash ISAs is Shawbrook at 1.3%, which is matched by Virgin, however, there is a two per year withdrawal limit on the Virgin product.
If your goal is to beat inflation, the only accounts that will pay more than the current inflation rate of 2.5% require you to hold a current account with the relevant provider.
Savings accounts can form part of your long term financial planning strategy. Once your cash is sorted, it's important to speak to your adviser who can help you to achieve your goals.
The value of investments and income from them may go down as well as up and you may not get back the original amount invested.
Information is based on our current understanding of taxation legislation and regulations which is subject to change.
June 2018: What are the best savings account rates?