Rates on one year bonds reach 2.12pc

Fixed-rate deals continue to edge up, with FirstSave paying 1.69 pc after tax (2.12 pc before) to new savers willing to tie up their money for a year.

the new deal is just below the top payer, Shawbrook Bank, at 1.72 pc (2.15 pc). Other top one-year deals come from Charter Savings Bank at 1.66 pc (2.07 pc) and the French RCI Bank at 1.65 pc (2.06 pc).

Shawbrook also pays top rates for longer-term deals at 1.88 pc (2.35 pc) for 18 months, and 1.96 pc (2.45 pc) for two years. these bonds are only available online or over the phone.

the top deals in the High Street include Leeds BS at 1.36 pc (1.7 pc) and Virgin Money at 1.32 pc (1.65 pc) fixed for one year. For two years, the best you can do is Yorkshire Building Society at 1.68 pc (2.1 pc), launched today.

rates on cash isas are lower. Shawbrook Bank offers the best rate for one year at a tax-free 1.95 pc fixed.

For two years, Coventry Building Society pays 2.05 pc fixed until November 30, 2017. alternatively, aa Savings, where the deposit-taker is Bank of ireland, pays 2.01 pc, while Shawbrook Bank and Principality BS offer 2 pc.

Yorkshire BS’s new fixed-rate cash isa at 2.3 pc until december 31, 2018, is the top three-year deal.

it’s also available from its offshoots Barnsley, Chelsea and Norwich & Peterborough building societies. all accept transfers from other providers.

Make sure you’re happy to tie up your money. Some providers won’t let you take it out during the term, and those that do charge you a hefty fee.