New winner in easy-access savings
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.