Best money deals this week - October 9th
redpig.jpg

For a better-paying cash ISAs…

  • AA has launched a new one-year fixed-rate ISA paying 1.76 per cent upon its anniversary. Savers must invest from £500. Early access is allowed subject to closure of the account and a breakage charge. Transfers in from both cash and stocks & shares ISAs are accepted. This deal is for savers aged 16 and over and must be operated online.
  • Verdict: Savers who have yet to utilise this year’s tax-free allowance will be excited by this new launch from AA. Paying 1.76 per cent, this deal heads straight into the Moneyfacts.co.uk Best Buys and would make a great choice for anyone looking to keep their savings away from the taxman.

For one-year fixed-rate savings…

  • FirstSave has increased the rate paid on its one-year fixed-rate bond, which now pays 2.06 per cent on its anniversary or 2.04 per cent monthly. Savers opting for the anniversary rate must invest from £1,000 whereas those who choose the monthly option will have to invest at least £5,000. Additions and earlier access to funds are not permitted. Savers must be aged 18 and over and the account must be operated online.
  • Verdict: The bond is highly competitive, sitting among the top-ten of its sector. With a monthly option available, this is a great choice for anyone looking to supplement their income. However, with no early access to funds, savers must be comfortable with the length of the term.

For those looking to remortgage to a cheaper deal…

  • Yorkshire Building Society has re-vamped its mortgage range including its two-year fixed-rate mortgage, which is now priced at 1.44 per cent to 31.1.18. This deal is available to all applicants who borrow between £25,001 and £5 million at 75 per cent loan-to-value. A fee of £975 is payable, of which £845 can be added to the advance of the mortgage. This deal has the flexibility of being able to make overpayments, underpayments and take payment holidays. Yorkshire Building Society’s lending area includes Scotland.
  • Verdict: This mortgage is highly competitive and sits among the top three deals on the market, entering the Moneyfacts.co.uk Best Buys as a result. This deal is a cost-effective option for many borrowers, especially for those who want flexible repayment options.

For borrowers with a small deposit… 

  • Tesco Bank has reduced the rate on its two-year fixed-rate mortgage, which is now priced at 3.89 per cent to 31.1.18. This deal is for all borrowers who borrow from £40,000 at 95 per cent loan-to-value. A fee of £495 is payable, of which £300 can be added to the advance of the mortgage. An incentive package for remortgage customers of free valuation and free legal fees is available. This deal has the flexibility of being able to make overpayments of up to 20 per cent of the outstanding balance and take payment holidays.Tesco Bank’s lending area includes Scotland.
  • Verdict: Borrowers with a small deposit of 5 per cent will be delighted by this latest update from Tesco Bank. Priced at 3.89 per cent, it sits just shy of the market-leader, and as a result heads straight into the Moneyfacts.co.uk Best Buys. Not only does this deal offer borrowers a great rate and a low fee, but remortgage customers will also enjoy a great range of incentives, including free valuation and free legal fees. In addition, Clubcard holders will receive the added benefit of extra points to spend in-store.

For those looking to switch their current account...

  • Natwest and RBS are launching a new personal current account which will reward customers with 3 per cent back on household bills including council tax, gas, electricity, water, phones, TV and broadband. Available from October 12 and for a £3 monthly fee.
  • Verdict: The latest current account from NatWest is a welcome addition to the market and gives customers looking to switch more choice. With 3 per cent cashback on household bills this is a great option for many looking to get something for nothing for just paying the bills. The cashback is easy to work out giving account holders the confidence of what they will be receiving with the extra flexibility of being able to trade up for reward vouchers or even donate to charity. Compared to other current accounts that offer cashback, NatWest’s Reward account offers more cashback overall on household bills. However, customers must ensure they earn more cashback than £36 a year fee to make this account worthwhile. This current account however, lacks credit interest so those looking to utilise their current account as savings vehicle may be disappointed.”

 Thanks to Charlotte Nelson from Moneyfacts.