Best new money deals - February 4th
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For a nicer easy-access ISA…

  • Virgin Money has increased the rate on its easy-access ISA, which now pays 1.51 per cent yearly or 1.5 per cent monthly. Savers can invest from as little as £1. Further additions are permitted and up to three penalty-free withdrawals are allowed per calendar year, with subsequent withdrawals resulting in the rate being reduced to 0.75 per cent for the remainder. Transfers in from other cash ISAs are also permitted. This deal is for savers aged 16 and over and can be operated in branch, by post and by telephone.
  • Verdict: Investors looking for an easy-access home for their ISA savings will be delighted by this latest update from Virgin Money. Paying 1.51 per cent, this deal enters the Moneyfacts.co.uk Best Buys, making it a popular choice for savers looking for a well-known brand. It should be noted that the rate will drop to 0.75 per cent if more than three withdrawals are made in one calendar year, so savers will need to budget carefully.

For five-year fixed-rate savings… 

  • Paragon Bank has launched a five-year fixed rate bond, paying 3.00 per cent upon its anniversary or 2.96 per cent monthly. Savers can invest £1,000 up to a maximum of £100,000. Additions are permitted within five days of the account opening but no early access is allowed. This deal is for savers aged 18 and over and must be operated online.
  • Verdict: This deal is highly competitive and sits within the top 10 in its sector. This is likely to be a great choice for any online investor looking to maximise their interest over the longer term.

For a five-year fixed-rate ISA…

  • State Bank of India has increased the rate on its five-year fixed-rate ISA, which now pays a market-leading 2.60 per cent yearly or on maturity. Savers can invest from £5,000. Early access is allowed, provided 30 days’ notice is given and will result in a 1% loss of interest penalty. Transfers in from other ISAs are also permitted. This deal is for savers aged 18 and over and can be operated in branch, by post and online.
  • Verdict: Investors looking for a long-term home for their ISA savings will be intrigued by this latest update from State Bank of India . Paying 2.60 per cent, this deal heads straight to the top of the Moneyfacts.co.uk Best Buys. This is likely to be a popular choice among savers looking to maximise their interest on this year’s tax-free allowance.

For those looking to consolidate credit card debts…

  • MBNA Limited has increased the 0 per cent interest balance transfer term on its Platinum Balance Transfer Credit Card Visa. This deal now has a 37-month interest-free term for balance transfers with an introductory fee of 2.89 per cent. Borrowers must be at least 18 years old to apply.
  • Verdict: Borrowers looking to consolidate their credit card debts over the long term will be delighted by this latest update from MBNA Limited. The increased balance transfer term makes this deal an even more cost-effective choice and should appeal to those looking to pay off their debts over a longer period of time. As always, customers should aim to pay off the debt before the deal ends so that they do not incur any interest.

For remortgage customers looking for free valuation and legal fees… 

  • Tesco Bank has reduced the fee on its two-year fixed -rate mortgage priced at 3.89 per cent to March 31, 2018. This deal is for all applicants who borrow from £40,000 at 95 per cent loan-to-value. A fee of £195 is payable upfront. An incentive package for remortgage customers of free valuation and free legal fees is available, and Tesco Clubcard holders will receive one Clubcard point for every £4 made in mortgage repayments. This deal has the flexibility of allowing borrowers 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 intrigued by this latest update from Tesco Bank. With a competitive rate and great incentive package for remortgage customers, this deal enters the Moneyfacts.co.uk Best Buys and is likely to be a popular choice for many. In addition, Clubcard holders will receive the added benefit of extra points to spend in store.

Thanks to Charlotte Nelson at Moneyfacts.

  • There are more money-saving tips in every issue of Yours magazine, out every fortnight on a Tuesday.