Coventry Building Society today leapt to the front of good deals for savers with a one-year fixed-rate Isa at 5.30% and a two-year fixed-rate Isa at 5.40%.
The society is also giving its easy access account a hefty bump with rates rising 4.3% from Friday compared to 3.55% with six withdrawals allowed annually without penalty.
Rachel Springall, at Moneyfactscompare.co.uk, said: “Those savers comfortable to invest their cash for either one or two years will find the fixed Isas are currently market-leading.”
Financial data firm Moneyfactscompare.co.uk confirmed that these were currently the best deals on offer for savers, but rivals have been quick to respond.
Nationwide also announced the launch of a one-year fixed-rate Isa and one-year fixed-rate bonds paying 5.10%.
Moneyfacts said the best rates among the easy access accounts include 4.35% from both Yorkshire Building Society and Family Building Society.
Lenders have been under fire from MPs and the government over the growing disparity between mortgage rates and those offered on savings accounts.
A two-year fixed-rate mortgage has an average coupon or interest rate of 6.4% according to Moneyfacts’ data.
Britain’s banks are meeting with the FCA tomorrow to discuss poor rates of savings accounts and whether the big high street banks are profiteering at their customers’ expense.