Check out this week’s best new financial deals

Savings

Paragon Bank has increased the rate on its two-year fixed-rate bond, which now pays 2.4%. Savers can invest between £1,000 and £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.

It’s good because: This the highest-paying two-year bond in the market.

 

Virgin Money has increased the rate paid on its one-year fixed-rate Isa, which is now 1.76% a year. 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.

It’s good because: This is a highly competitive rate and sits comfortably among the top five in the market.

 

Mortgages

Nationwide Building Society has reduced its 10-year fixed-rate mortgage, which is now priced at 3.99%. This deal is for first-time buyers only who borrow between £25,000 and £750,000 at 85% loan-to-value (LTV). There is a fee of £999, all of which can be added to the loan advance. A £500 rebate is available, and there is the flexibility of being able to make overpayments of up to 10% of the outstanding balance and to make underpayments.

It’s good because: Borrowers looking for a long-term deal might be surprised by this offer, which is highly competitive. With the bonus of a £500 cash rebate, this could prove to be a popular choice for those looking for the security that a 10-year fixed rate provides.

 

Loughborough Building Society has launched a two-year discounted variable-rate mortgage, priced at 1.99% (a 3% discount). This deal is for all customers who borrow between £25,000 and £500,000 at 85% LTV. There is a fee of £299, which can be added to the advance. There is the flexibility to make overpayments of up to 10% of the outstanding balance.

It’s good because: This sits within the top five of its sector, and the low fee could make it a cost-effective option for many borrowers.

 

Current accounts

Tesco Bank has removed the £5 monthly fee on its current account. This account pays 3% credit interest on balances up to £3,000, and customers can also fall back on an authorised overdraft rate of 18.9%. Account holders will be able to benefit from earning Tesco Clubcard points with debit-card spending, too.

It’s good because: This account is a great all-rounder, offering not only competitive credit interest but a good overdraft facility. It should appeal to customers looking for fuss-free banking.