Get cash Isa bonus from Post Office

CASH Isa rates are creeping up but still lag behind taxable accounts.

Post Office, where the deposit taker is Bank of Ireland, has increased the rate on its Online Isa to 1.07 pc. But the rate includes a bonus payable for the first year.

After this you need to move your money to a better deal or end up earning just 0.25 pc. Only new savers will get the new, higher rate.

Overall, the top easy-access rates are Sainsbury’s Bank Cash Isa and Virgin Money’s Defined Access Isa at 1.06 pc, followed by Coventry BS which upped its rate to 1.05 pc on its Easy Access Isa 6. None come with an initial bonus which drops away after a certain period.

On one-year fixed-rate cash Isas, Virgin Money pays 1.35 pc.

On the High Street the best deal is 1.35 pc from Virgin Money. Leeds BS has raised its rate to 1.35 pc but you have to tie up your money for slightly longer — until December 2 2018, rather than just 12 months.

Yorkshire Bank’s new account pays a slightly higher 1.5 pc if you are willing to wait until January 31, 2019, to get your money back.

The best you can do if you are happy to tie up your money for two years is 1.65 pc with Charter Savings Bank online or 1.55 pc with Virgin Money, which you can open in branches, by post or over the telephone.