Top variable deal hits new high of 1.2%: French-owned RCI Bank raises rate on its Freedom account

By SYLVIA MORRIS, THIS IS MONEY AND DAILY MAIL SAVINGS EXPERT

Updated:

Easy-access savings rates with new banks are continuing to rise.

French-owned RCI Bank has raised the rate on its Freedom account from 1.1 per cent to 1.2 per cent, and given the higher rate to new and existing savers.

It puts it just behind the top deal at 1.25 per cent from Ulster Bank. Both accounts are only available online.

French-owned RCI Bank has raised the rate on its Freedom account from 1.1% to 1.2%

French-owned RCI Bank has raised the rate on its Freedom account from 1.1% to 1.2%

With Ulster Bank, your money is covered by the UK Financial Services Compensation Scheme which gives you up to £85,000 of cover if the bank goes bust. 

RCI Bank comes under the French scheme where the limit is €100,000 (currently around £88,000).

Neither rate is boosted by an initial bonus, so you won’t see your interest drop after a year.

Top branch deals come from Yorkshire BS Single Access Saver 4 at 1.1 per cent or Virgin Money Defined Access Issue 13 at 1.01 per cent.

But there are complications. 

Yorkshire BS allows you to make withdrawals only on the anniversary of opening the account, while with Virgin Money you can make only three withdrawals every 12 months; if you make any more, your rate drops to 0.25 per cent.

Top deals on branch accounts which let you put money in and take it out as you wish include National Counties BS Branch Saver 5 at 0.86 per cent and Coventry BS Easy Access Saver 4 at 0.85 per cent.

THE 5 PER CENT SAVINGS TRICK 

If you're fed up with paltry savings rates an interest-paying current account could help you get better returns on your savings pot.

Savers can find accounts paying as much as 5 per cent, more than double offered on the leading short-term fixed rates. 

This is Money, has a regularly updated guide to the best offers carefully chosen by its expert writers our guide to the top interest-paying current accounts

We round up some of the best deals on offer below:

The best interest-paying account for you will depend on the level of your balance and your monthly deposit amount. 

Santander 's 123 Account pays to 1.5 per cent interest on amounts between £1,000 and £20,000, but it is still a top deal for anyone with a large balance. 

It also pays up to 3 per cent tiered cashback on household bills, however it has a monthly charge of £5.

Nationwide FlexDirect pays 5 per cent interest on balances up to £2,500 - but this only for the first year. You must pay in a minimum monthly income of £1,000. 

TSB's Classic Plus account offers 3 per cent interest on the first £1,500 in your account plus you get up to £10 each month if you maintain two direct debits from the account and make at least 20 debit card payments a month (until June 2018). The account requires a £500 monthly deposit,  

 

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