Hope for savers as rates edge up

SAVINGS rates are finally edging up after the mighty Goldman Sachs arrived on the scene last month.

Smaller banks and building societies have scrambled to compete with its 1.5pc deal, pushing easyaccess rates up to their highest level for two years.

The online Marcus account by Goldman Sachs pays a top 1.5pc. But this includes a 0.15 percentage point fixed bonus payable for the first year.

Within hours of its arrival, Charter Savings Bank had launched a new version of its Easy Access account, paying 1.4 pc.

This was quickly followed by Shawbrook Bank, which raised the rate for new savers opening its Easy Access account to 1.4 pc.

Paragon Bank has launched a new issue of its Limited Edition Easy Access account, at 1.37pc, while OakNorth Bank’s new Easy Access account pays 1.3 pc. AA Savings Member Saver and Kent Reliance Easy Access are also up, at 1.37 pc if you are opening an account.

There are no restrictions on the number of withdrawals you make and your money is covered up to £85,000 — or £170,000 on joint accounts — by the UK Financial Services Compensation Scheme.

On the High Street, Family BS Branch Saver pays 1.21pc, Virgin Money Easy Access Saver 1.16pc and Coventry BS Easy Access Saver 5 1.15 pc.

There are slightly higher rates on offer on the High Street, but the accounts are more complicated.

The Coop Bank raised the rate on its Britannia Select Access Saver issue 9 to 1.2pc last week, but you are limited to four withdrawals in a calendar year.