New win­ner in easy-ac­cess sav­ings

The Daily Telegraph - Your Money - - OPINION - Sam Barker

Kent Re­liance has taken the top spot in the easy-ac­cess best-buy ta­bles, dis­lodg­ing Gold­man Sachs’s Mar­cus. The new Kent Re­liance deal pays 1.5pc. Mar­cus is of­ten re­ported to pay the same rate, but ac­tu­ally pays 1.35pc plus a one-year bonus that takes the over­all rate to 1.5pc. As Kent Re­liance’s rate will not au­to­mat­i­cally fall after 12 months, it comes top.

Rates have been creep­ing up in the easy-ac­cess mar­ket since the launch of Mar­cus in late Septem­ber. At the time, it paid 0.09 per­cent­age points more than its near­est ri­val. Savers can achieve a higher in­ter­est rate if they are will­ing to lock their cash away, but many pre­fer the flex­i­bil­ity of­fered by easy-ac­cess ac­counts.

Cus­tomers need at least £1,000 to open Kent Re­liance’s 1.5pc ac­count, which can be done in a branch, on­line or by post. The ac­count can be man­aged through the same chan­nels.

Savers can open the Mar­cus ac­count with £1, save up to £250,000 and with­draw money in any way they like with no penal­ties. The ac­count must be opened on­line by over-18s but can be man­aged by tele­phone. In third place is Vir­gin Money, which pays 1.45pc. You need £1 to open this ac­count, which can only be man­aged on­line.

Tesco Bank also pays 1.45pc, although after a year this will drop to 0.55pc. Cus­tomers need £1 to open this ac­count and can use the in­ter­net or mo­bile bank­ing to do so.

Post Of­fice Money pays 1.45pc too, though this will fall to just 0.25pc after 12 months. Savers can open ac­counts with £1 and the deal is on­line only.

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