Cash point

Good news for savers as interest rates keep rising. OK, so they are still not earth-shattering but they are heading in the right direction and there is the chance to get a bit of a return on your cash.

Data from industry experts Moneyfacts reveals the average return on a one-year fixed rate bond has hit 1.14%, up from April when it was below 1%.

Rachel Springall, finance expert at moneyfacts.co.uk, said: “It’s encouraging to see a noticeable improvement in the returns on one-year fixed rate bonds, as these are likely to be a firm favourite among savers looking to lock into a decent rate over a shorter term.

“The welcome surge in the market has been largely fuelled by the challenger banks.”

The top-paying one-year bonds are: Al Rayan Bank (0845 5912009) 1.9%, Kent Reliance (0345 1220022) 1.85%, Milestone Savings (0345 6003350) 1.82% and app-based Atom Bank (0333 3990050) 1.8%.

If you don’t want to lock your cash away the best easy access account is RCI Bank’s (0330 2000300) 1.3%, followed by Kent Reliance and Post Office Money (0800 1697500) paying 1.27%.