Santander and Coventry Building Society launch 1.5% easy-access Isas jumping to top of best savings account table

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Santander and Coventry Building Society launch 1.5% easy-access Isas jumping to top of best savings account table



SAVERS looking to maximise their earnings without the commitment should think about sticking their cash with Santander or Coventry Building Society.
Both banks have upped the rates on their easy access accounts to 1.5 per cent, making them best-buys.
Getty – Contributor Santander’s chart-topping rates are only available to existing customers
The accounts narrowly overtake OakNorth as the top-paying east access which pays 1.44 per cent.
Easy access accounts mean that you won’t be charged for withdrawing your cash, unlike fixed-rate accounts where you will be charged a penalty for taking money out before the term is up.
While fixed-rate accounts offer better rates, 1.5 per cent on your savings is the best you’ll get if you’re likely to need access to your cash.
Santander raised rates first, hiking interest paid by 1 percent from 0.5 per cent – but the top rate is only offered to existing customers with a 123 World account.
Alamy The Coventry Building Society’s account can be opened with £1
Anyone else will only be paid a poorer rate of just 1.1 per cent – plus it costs £5 to have a 123 World account which will inevitably eat into your earnings.
Under the old rates, existing savers would have earned just 25p on £500 worth of savings after a year.
Now, with the new rates that’s been boosted to £7.55, so at the end of the year you’ll have £507.55 sat in your bank account.
Okay, so it doesn’t sound like much but as the Bank of England’s base rate is still low, it’s your best bet without locking your cash away.
What are the best easy-access Cash Isas?THESE are the best easy access accounts that ley you can take your money out without having to pay a penalty. Here are the top rates: 

Rate: 1.5 per cent
Minimum investment: £500
Interest earned on £1,000: £15.10

Rate: 1.5 per cent
Minimum investment: £1
Interest earned on £1,000: £15.10

Rate: 1.45 per cent
Minimum investment: £1
Interest earned on £1,000: £14.50
Please note: Only two withdrawals can be made each calendar year

Rate: 1.44 per cent
Minimum investment: £1,000
Interest earned on £1,000: £14.40
Please note: Withdrawals must be at least £1,000 each time

There are a few catches of course. You need to deposit at least £500 in your account to open one and the best rates only last 12 months too.
After a year, the rate is slashed to just 0.35 per cent so you should consider moving your cash elsewhere.
Coventry Building Society also raised its rates today on it’s easy access account, paying 1.5 per cent until July 31, 2020.
From August 1, 2020 the rates drop to 1.5 per cent. That means that you’ll earn more the sooner you open your account.
Unlike Santander, you can open an account with just £1 but it can only be done online.
Rachel Springall from MoneyFacts.co.uk recommends Coventry Building Society over Santander if you have less than £500 savings – but customers of both banks should set a reminder for when the rates end.
She said: “It’s great to see a brand new market-leading easy access ISA rate, which is only 0.01 per cent shy from the market-leading easy access non-ISA rate from Family Building Society.
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“Savers may well be looking towards the short-term market for an ISA due to growing economic uncertainties, and the best easy access ISA now pays 0.20 per cent more than this time last year.”
It’s not the highest rate we’ve seen this year – ICICI Bank offered 1.55 per cent back in January this year.
If you’re thinking about opening an Isa account then you should check out our round up of the accounts with the best rates.

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