Best new money deals - January 18th

For a rewarding bank account…

  • The Co-operative Bank has launched Everyday Rewards for new and existing current account holders. Current account customers will now be able to receive £4 per month if eligible accounts are funded by £800 per month and four different direct debits are held. To receive the reward, current-account holders must ensure their account is kept in credit or within their agreed overdraft limit and frequently log in to online banking. Up £1.50 extra can be earned per month through debit-card spending. All rewards will be paid into a nominated account each month or donated to selected charities.
  • Verdict: Everyday Rewards is a great perk for existing current-account customers or anyone considering switching to a Co-op deal. With an option to donate rewards to charity, this deal will appeal to all those who are looking to get a little something extra from their money. However, customers will need to look at the whole current account to ensure that it’s the best deal for them.

For tax-free savings...

  • Leeds Building Society has reviewed its one-year fixed-rate ISA, which now pays 1.65 per cent on maturity. Savers can invest from £100. Additions are permitted up to March 31, 2016 and early access is allowed subject to 60 days’ loss of interest. Transfers in from 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.
  • Verdict: This cash ISA is highly competitive and enters the Best Buys as a result. This is a great choice for savers who have yet to utilise their tax-free allowance, and with the extra flexibility of early access to funds, this is likely to be a popular choice.

For easy-access savings…

  • Post Office Money has reviewed its easy-access account, Online Saver Issue 18, which now pays 1.30 per cent yearly (including a 0.65 per cent bonus for 12 months). Savers can invest as little as £1 up to a maximum of £2 million. Further additions and unlimited withdrawals are permitted without notice. This deal is for savers aged 18 and over and must be operated online.
  • Verdict: Investors looking for easy access to funds will be highly interested in this account by Post Office Money. Paying 1.30 per cent, this deal enters the Best Buys, making it a popular choice for savers looking for a well-known brand. Savers will need to re-evaluate the account before the bonus period expires to ensure competitive returns are maintained.

For a two-year fixed-rate mortgage…

  • Norwich & Peterborough Building Society has reduced the rate on its two-year fixed mortgage, which is now priced at 3.68 per cent. This deal is for house-purchase customers only who borrow between £50,000 and £500,000 at 95 per cent loan-to-value. A fee of £845 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, make underpayments and take payment holidays. Norwich & Peterborough’s lending area does not include Scotland.
  • Verdict: Borrowers with a small deposit of 5 per cent will be intrigued by this latest update from Norwich & Peterborough. Priced at 3.68 per cent, this deal sits towards the top of the market and enters the Best Buys as a result. With a great range of flexible repayment options, this is likely to be an attractive choice for many.

For a three-year fixed-rate mortgage…

  • Principality Building Society has amended its three-year fixed rate mortgage, which is now priced at 2.30 per cent to February 28, 2019. This deal is for all applicants who borrow between £5,000 and £650,000 at 75 per cent loan-to-value. A low fee of £99 is payable. An incentive package of free valuation for all borrowers and free legal fees for those remortgaging is available. Principality’s lending area does not include Scotland.
  • Verdict: This deal is highly competitive and enters the Best Buys. Borrowers will be able to enjoy a low fee of £99 and a great incentive package, which will no doubt make this a popular choice among borrowers.

Thanks to Charlotte Nelson at Moneyfacts.

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