Bonds battle lifts interest: Secure Trust now offering 1.25% as new banks leapfrog each other to pay top rates
Bond boost: Several banks are now paying 1.2 per cent fixed for one year
New banks have been leapfrogging each other to pay top rates on fixed-rate bonds.
There are now several which pay 1.2 per cent fixed for one year, compared with a very top rate of 1 per cent earlier in the summer. The best rate is currently 1.25 per cent on offer from Secure Trust Bank.
Today, OakNorth Bank is raising its one-year bond to 1.23 per cent while Aldermore Bank has reappeared among the top pays with a rate of 1.2 per cent. It joins Allicia, Paragon and United Trust banks all of which pay 1.2 per cent.
Kent Reliance pays 1.17 per cent, making it the best deal in the high street for those who prefer to use a branch rather than open an account online.
These rates are far better than those offered by the big banks. HSBC and Barclays offer just 0.3 per cent on their one-year fixed-rate bonds.
You earn very little extra for tying your money up for longer with the top two-year rate at just 1.35 per cent from Secure Trust.