Best money deals this week - September 18th

For a competitive current account...

  • Tesco Bank has removed its £5 monthly fee on its current account. It pays 3 per cent AER credit interest on balances up to £2,999.99 and customers can also fall back on an authorised overdraft rate of 18.9 per cent EAR. Account holders will be able to benefit from earning Tesco Clubcard points with debit card spending too.
  • Verdict: The removal of the monthly fee from Tesco Bank’s current account puts this deal firmly in the Best Buys. The account is a great all-rounder, offering not only competitive credit interest but a good overdraft facility, which is likely to appeal to customers looking for fuss-free banking wrapped up with the added bonus of extra loyalty points.

For one-year fixed-rate ISAs...

  • Virgin Money has increased the rate paid on its one-year fixed rate ISA, which is now 1.76 per cent yearly or 1.75 per cent monthly until 15.10.16. Savers can invest from as little as £1. Additions are permitted within 30 days of the account opening and early access is also allowed subject to a penalty of 60 days’ loss of interest. Transfers in from both cash and stocks & shares ISAs are accepted. This deal is for savers aged 16 and over and can be operated in branch and by post. An internet-only version is also available here.
  • Verdict: This ISA is highly competitive and sits comfortably among the top five of the market. This is a great choice for savers who want to earn a great rate while keeping their savings safe from the taxman.

For two-year fixed-rate bonds...

  • Paragon Bank has increased the rate on its two-year fixed-rate bond, which now pays 2.40 per cent upon its anniversary or 2.37 per cent monthly. Savers must invest from £1,000 up to a maximum of £100,000. Additions are permitted within five days of the account opening, but early access is not permitted. This deal is for savers aged 18 and over and must be operated online.
  • Verdict: Internet investors will be delighted by this latest update from Paragon Bank. Paying 2.40 per cent, this two-year fixed-rate is the highest-paying two-year bond in the market, heading straight into the Best Buys as a result. However, with no early access to funds, savers will need to be happy to lock their money away.

For first-time buyers... 

  • Nationwide Building Society has reduced its 10-year fixed-rate mortgage, which is now priced at 3.99 per cent. This deal is for first-time buyers only who borrow between £25,000 and £750,000 at 85 per cent loan-to-value. A fee of £999 is payable, all of which can be added to the advance of the mortgage. An incentive package of a £500 rebate is available. This deal has the flexibility of being able to make overpayments of up to 10 per cent of the outstanding balance and make underpayments. Nationwide’s lending area includes Scotland .
  • Verdict: Borrowers looking for a long-term mortgage deal will be surprised by this latest offer from Nationwide. At 3.99 per cent, this deal is highly competitive and sits comfortably in the market. With the extra bonus of a £500 cash rebate, this deal will be a popular choice for borrowers who are looking for the extra security a 10-year fixed rate provides.

For two-year discounted mortgages...

  • Loughborough Building Society has launched a new two-year discounted variable rate mortgage, which is priced at 1.99 per cent (3.00 per cent discount). This deal is for all customers who borrow between £25,000 and £500,000 at 85 per cent loan-to-value. A fee of £299 is payable, all of which can be added to the advance of the mortgage. This deal has the flexibility to make overpayments of up to 10 per cent of the outstanding balance. Loughborough’s lending area does not include Scotland .
  •  Verdict: This mortgage  is highly competitive, sitting within the top five of its sector. With a low fee of £299, this is likely to be a cost-effective option for many.

Thanks to Charlotte Nelson from Moneyfacts.

  • Should you ditch your Santander 123 account when it more than doubles the fee in January?  Find out here. Plus there's more money savers in every issue of Yours magazine, out every fortnight on a Tuesday.