Penalty-free online deal pays 1.21 pc

RATES on taxable online easy-access accounts continue to edge up.

Paragon Bank has a new Limited Edition Easy Access account at 1.21 pc. Unlike some other top payers, there are no restrictions on taking out money and no initial bonus that runs out after a year.

Similar accounts include Ford Money Flexible Saver at 1.22 pc and RCI Freedom Savings at 1.3 pc.

Tesco Bank Internet Saver’s 1.3 pc includes a bonus for the first year, after which your rate drops to its standard rate — currently 0.55 pc.

Post Office Online Saver’s 1.3 pc tumbles to 0.25 pc after 12 months.

ICICI Bank has raised its HiSave Bonus Saver 2 rate to 1.35 pc for new savers. It includes a 0.7 percentage point bonus payable until the end of January next year.

On fixed-rate bonds, the best one-year rate comes from Atom Bank at 1.95 pc. You operate this account through its app.

Online, Investec pays 1.85 pc and Secure Trust Bank 1.81 pc.

The best two-year deals come from Atom at 2.1 pc and online bank Axis Bank at 2.04 pc.

You’ll earn less in the High Street. Top one-year bonds include 1.4 pc from Hinckley & Rugby BS, Dudley BS at 1.31 pc, 1.3 pc from Leeds BS and 1.25 pc with Virgin Money. For two years, Hinckley & Rugby pays 1.6 pc and Principality BS 1.57 pc.