Pick of the week

Some of the week’s best deals

Savings

Yorkshire Building Society has launched a three-year fixed-rate Isa paying 2.5% a year, or a monthly option paying 2.47%. The minimum investment is £100. Additions are permitted while the issue remains open and early access to funds is also allowed, subject to closure of the account and a 180-day loss of interest. Transfers in from cash and stocks & shares Isas are allowed. Available for savers aged 16 and over, and operated in branch and by post.

It’s good because: Savers who have yet to invest this year’s tax-free allowance will be delighted by this launch. This deal heads straight to the top of its sector and is likely to be a popular choice for those looking for a fixed-rate home for their savings with the flexibility of early access.

 

The AA has increased the rate on its no-notice Internet Extra account, which now pays 1.4% on its anniversary, including a 0.9% bonus for 12 months. Additions and early access to funds are permitted. Investments must be between £1,000 and £1m. For savers aged 18 and over, and operated online only.

It’s good because: This highly competitive deal sits within the top 10 of its sector. It is likely to appeal to those looking to kick-start their savings habit. However, savers need to review the account before the bonus period expires.

 

Mortgages

First Direct has added a two-year fixed-rate deal to its range, priced at 3.19%. This deal is for customers who borrow between £10,000 and £400,000 at 85% loan-to-value (LTV). There is no fee but there is an incentive package of free valuation and free legal fees for remortgage customers. There is the flexibility of being able to make overpayments. Non-First Direct customers must open a current account alongside the mortgage to be eligible.

It’s good because: The lack of a fee and a great incentive package means this is likely to be popular with borrowers looking to minimise their upfront costs.

 

Hinckley & Rugby Building Society has reduced selected rates across its range, including its two-year discounted variable rate, which is now priced at 1.85% (a 3.79% discount). It is available for customers who borrow from £50,000 at 80% LTV. The fee is £999, of which £800 can be added to the mortgage advance. There is an incentive package of free valuation and free legal fees for remortgage customers. Overpayments are allowed.

It’s good because: This product is highly competitive and heads straight to the top of its sector. The great incentive package makes this deal a cost-effective choice for many.

 

For more of the best deals, visit www.moneyfacts.co.uk