Banks slash fixed-rate deals AGAIN

Building societies and banks are continuing to cut their fixed-rate deals on both cash isas and bonds.

The top one-year taxable bonds come from Swedish-owned ikano Bank uK at 1.6 pc after tax (2 pc before) and French- owned RCi Bank uK at a marginally higher 1.6 pc (2.01 pc).

With both these banks your money is not covered by the uK Financial Compensation Scheme and instead comes under the pan- European scheme, which has €100,000 (around £79,000) of cover.

The top rate covered by the uK scheme is 1.41 pc (1.76 pc) from online Charter Savings Bank, down from 1.45 pc (1.81 pc) last week.

in the High Street the best you can do is 1.28 pc (1.6 pc) with Coventry BS or 1.24 pc (1.55 pc) from leeds BS, both fixed until April 30 next year

For two years, top deals include 1.8 pc (2.25 pc) from RCi Bank, or 1.72 pc (2.15 pc) from ikano Bank.

Once again, in the High Street rates are lower, with a top 1.36 pc (1.7 pc) from leeds BS until April 30, 2018.

On fixed-rate cash isas, rates are even worse.

Both Skipton BS and Kent Reliance have cut rates on their one-year deals this week to a tax-free 1.3 pc and 1.45 pc respectively.

Tesco Bank has slashed its rate to just 1.1 pc — the second cut this year for new savers. Just four weeks ago it paid 1.75 pc.

The best one-year deal is 1.5 pc from Aldermore Bank, Shawbrook Bank and Virgin Money.

For two years, the top deal is 1.75 pc from Kent Reliance, Metro Bank and Aldermore Bank.