Easy-access rates hit 1.2 pc in branches

A HANDFUL of banks and building societies have been raising the rates they pay new savers on taxable easyaccess accounts — but you need to look behind the headline deal to find out what you’re signing up to.

Yorkshire BS has upped the return on its branch-based Single Access Saver to 1.2 pc for new savers. But the terms and conditions state you can make withdrawals on only one day in the year.

At the end of your first 12 months, your account automatically turns into a Triple Access Saver. This allows withdrawals on three days a year, but interest is a lower 0.85 pc.

Unlike the Virgin Money account, which runs along the same lines, you can close the Yorkshire account at any time, even if you have made your withdrawal for the year.

Virgin Money’s internet-based Double Take E-Saver pays 1.2 pc and limits you to two withdrawals a year. Closing your account counts as one, so you must sit out the full year if you have already taken out money twice.

Tesco Internet Saver pays 1.25 pc, dropping to 0.55 pc after a year.

Top easy-access accounts with no strings attached include RCI Bank’s Freedom Savings Account at 1.3 pc. Meanwhile in the High Street, Kent Reliance pays 1.21 pc, National Counties BS has 1.11 pc interest and for Virgin Money it’s 1.01 pc.