Skipton increases rates on 1-year ISAs and fixed rate bonds

The interest rate on its 1 year fixed rate ISA and 1 year fixed rate bond has increased to 1.50%, while the rate on the 2 year fixed rate bond has increased to 1.80%. Skipton’s five year products on both ISAs and Bonds are still paying 2.75%.

The fixed rate one, two and three year ISAs now offer interest rates at 1.50%, 1.80% and 2.20%, respectively, with one, two and three year bonds paying 1.50%, 1.80% and 2.15%, respectively.

The building society also announced that this range of fixed rate ISAs and bonds will see the launch of Anniversary end dates, meaning these products will be the exact term (e.g. one year), instead of having a fixed end date.

The Society's Fixed Rate Bonds offer customers the chance to benefit from competitive returns over terms of one, two, three or five years. The minimum investment for each account is £500, up to a maximum of £1,000,000 (or £2,000,000 for joint accounts).

Kris Brewster, Skipton’s Head of Products, said:

“The new ISA rules mean that people can put substantially more of their savings into a tax free wrapper, up to £15,000. We have already seen a record number of ISA customers attracted to the Skipton since the announcement of the New ISA and we are continuing to offer savers attractive rates, including increased interest rates on a number of short-term products.

“Despite constant speculation of a possible increase in the Bank of England base rate, we still have the impact of a prolonged low base rate environment and savers continue to seek better rates. The chance to keep more of their savings from the taxman, plus interest rate increases on certain products, can only be good news for our customers.”