Hidden cuts lurk behind headline rate
A HANDFUL of banks and building societies now pay more than 1 pc on their easy-access accounts for those who run their accounts online.
But watch out for the terms and conditions behind the headline rate to ensure the account suits you.
Often, they come with restrictions on how many withdrawals you can make a year or the bank pays a bonus for the first 12 months after which your rate nosedives.
Top simple deals include RCI Bank Freedom Account at 1.1 pc, Shawbrook Bank Easy Access at 1.05 pc and Charter Savings Bank Easy Access at 1.01 pc.
Virgin Money pays 1.05 pc on its Defined E-saver but you are limited to making three withdrawals a year on the account. If you make more you’ll earn 0.25 pc.
Leeds BS Limited Issue Online Access 2 pays 1.05 pc. The account ‘matures’ at the end of May next year when your money is transferred to another account. There are no details yet as to what it will pay, so you might have to move your money then for a better deal.
Tesco Bank’s 1.06 pc rate includes a boost of 0.66 percentage points for a year, after which your rate drops to 0.4 pc. Bank of Cyprus’s 1.05 pc rate drops to 0.6 pc when your 12-month bonus runs out.
The AA deal at 1.03 pc is available only to members.