Yahoo Finance Top easy-access savings account pays highest rate in 15 months
The rate paid by the top easy-access savings account has risen to 1.35pc, the highest level since August 2016.
Bank of Cyprus UK's new online account offers a market-leading rate and can be opened with just £1.
However, it pays the 1.35pc rate, which includes a 0.5pc bonus, only for the first 12 months. After the first year the rate drops to 0.85pc, which wouldn't make the top five of the best buy tables.
A rate of 1.35pc or more has been almost unheard of for the past 15 months. RCI Bank, the French provider, paid 1.45pc on August 11 2016, according to Moneyfacts, the data firm.
However, the rate was cut to 1.2pc the next day. At the start of October RCI raised the rate to 1.3pc, which was market-leading at the time. Paragon Bank launched an account weeks later offering 1.31pc.
Rates on the top easy-access accounts have risen by more than 30pc since the start of the year, when the top rate was 1pc.
Since Bank Rate was increased on November 2 a number of providers have announced savings rate increases - although in most cases the rises have been small.
For example, Barclays will increase the rate on its Everyday Saver by just 0.15 percentage points, on balances between £1 and £50,000, on December 1.
Experts say smaller, less established providers may begin to offer better rates to win over savers disappointed with their banks.
Rachel Springall from Moneyfacts said now was the "perfect opportunity" for small banks to "entice any savers who are scanning the best-buy tables and are fed up getting a raw deal" with their existing provider.
From December 1 the chances of winning a prize with National Savings & Investments' Premium Bonds will improve slightly to 24,500 to 1 from 30,000 to 1. The effective prize fund rate will increase to 1.4pc from its current 1.15pc.
Those happy to tie up funds could earn significantly more with fixed-rate savings bonds.
For example, the top one-year account from Atom Bank, the mobile-only provider, pays 1.95pc. Its two-year and three-year fixed savers are also market-leading paying 2.05pc and 2.25pc respectively.
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