Savings update: look out for this new, top-paying deal

December 7, 2016 | 4years | Savings News

Leeds Building Society is to launch a top-paying easy access account on Tuesday (6 December). Its Limited Issue Online Saver pays 1 per cent before tax (0.8 per cent after tax) on a minimum £5,000. It matches the rate paid by RCI Bank, which has headed the best buy tables for months.

Tesco Bank as also raised the rate on its Internet Saver to 1 per cent (0.8 per cent) but this rate is boosted for a bonus paid for the first 12 months. After that your rate drops to 0.4 per cent (0.32 per cent).

Under new rules from city regulator the Financial Conduct Authority, which came in effect last week, banks and building societies have to write to you 14 days before your bonus runs out to warn you your rate will drop.

The new rules are not just limited to accounts with a bonus. They must also tell you of any cut they plan to make on all easy-access account you have.

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