Charter Bank pays 1.65pc on one-year fix

NEW banks are raising the interest paid out on fixed-rate bonds to as high as 1.65 pc for 12 months.

Charter Savings Bank is paying 1.65 pc after tax (2.06 pc before) and Kent Reliance 1.61 pc (2.02 pc) for one year.

The Charter Bank deal is available only on the internet, but you can buy the Kent Reliance version online or though one of its nine branches.

Those on offer from High Street providers have not yet started to move and remain lower.

The best deal from a mainstream provider is 1.41 pc (1.76 pc) from Post Office, where the deposit-taker is Bank of Ireland.

Nationwide and Virgin Money pay 1.32 pc (1.65 pc).

For two years, you can earn a higher 1.9 pc (2.38 pc) with Secure Trust, or 1.8 pc (2.25 pc) with Charter Savings Bank and Tesco Bank.

In the High Street, the top rate is a much lower 1.6 pc (2 pc) with Virgin Money or Skipton BS.

However, on tax-free cash Isas, High Street rates are as good as those you can earn on an account run over the internet.

The top one-year deal comes from Shawbrook Bank’s online account at 1.75 pc, while Virgin Money’s High Street and internet version pays 1.71 pc. Nationwide pays 1.65 pc and Halifax 1.6 pc.

For two years, Halifax, Virgin Money and Skipton BS all pay 2 pc. With Coventry BS, you can earn a slightly higher 2.05 pc, but you have to tie up your money until November 2017.