Yahoo Finance Coventry BS raises easy-access cash Isa rate to 1.05pc
Coventry Building Society has increased the rate on its easy-access cash Isa, giving it a top rate of 1.05pc.
The account is available to new and existing customers and can be opened with £1 in branches, by telephone or post, or online.
Old Isa transfers are permitted. Withdrawals can be made at any time.
The Coventry account just slides ahead of the current market leader, NS&I, which offers 1pc, although this rate is due to be cut to 0.75pc on May 1.
Coventry's Isa can still be beaten by the best easy-access non-Isa account from RCI Bank, which offers 1.1pc, although RCI savings will not be protected by the UK's Financial Services Compensation Scheme.
This is the time of year when Isa providers usually come forward with their best deals to entice customers to invest the last of their annual subscriptions - £15,240 this year, £20,000 for 2016-17. However, there has been little by way of competition this year.
Find out how to increase your savings income by up to 350% with the Telegraph Concierge Cash Service
Easy-access accounts beat the Isa equivalent and fixed-rate bonds pay more than fixed Isas of the same term.
For example, Atom Bank's one year bond offers 1.6pc whereas the top one-year Isa, from Bank of Cyprus UK, pays 1.1pc, more than 30pc less.
See here for our favourite fixed-rate bonds and fixed-rate Isas.
The personal savings allowance means that the tax-free savings accounts have lost their shine.
As of April last year, basic-rate taxpayers can earn up to £1,000 in interest and pay no tax. Higher-rate taxpayers get an allowance of £500.
Therefore, unless your savings yield more interest than your allowance or you're an additional-rate taxpayer (who do not get an allowance), you would be better off, in terms of interest paid, saving into a higher paying non-Isa account.
