Loyal savers get boost at Ford Money

NEW banks and building societies are continuing to push up rates.

Ford Money has edged up its Flexible Saver deal to 1.12 pc. It’s not the top rate on offer, as you can get 1.25 pc with Ulster Bank, or 1.3 pc with Bank of Cyprus, including a bonus for 12 months. But Ford Money account comes with a difference.

When it raises its rates, it guarantees that existing savers as well as new customers will benefit from the increase. Most banks tend to reserve their new, better rates for new savers and leave existing savers languishing on the lower rate.

Fixed-rate deals are also on the up. PCF Bank, launched last month, has raised the rate on its 18-month fixed-rate bond to 1.91 pc — a whisker above the top one-year deal from Shawbrook Bank at 1.9 pc.

For two years the best rate is 2.05 pc, from an expanding list of banks including Paragon, United Trust, Shawbrook and PCF.

If you want to stick to a High Street or postal account, rates are lower. Family BS has a one-year deal at 1.56 pc on £1,000, or 1.76 pc on £10,000 plus. Next best is Yorkshire BS at 1.2 pc. For two years, Family BS pays 1.66 pc or 1.86 pc on £10,000 plus, and Yorkshire BS 1.3 pc.

Ford Money has also raised its fixed-rate cash Isas rate to 1.2 pc for one year, and 1.33 pc for two years.