Skipton Building Society launches new fixed savings account with 5.25% interest | Personal Finance | Finance newsbhunt


Skipton Building Society has launched a five-year fixed-rate bond paying a 5.25 percent interest rate, giving customers a new option to lock in a higher rate for the long term.

With speculation that interest rates may be reaching their peak, particularly after the Bank of England’s decision not to raise its Base Rate from 5.25 percent in September, Skipton’s new deal could work for long-term savers looking to “prolong the lofty savings rates” of today.

Maitham Mohsin, head of savings at Skipton Building Society, commented: “The signs suggest that savings rates might just have reached their peak.

“The Bank of England has halted its run of consecutive Base Rate rises, and some savings providers have already started cutting their savings rates.

“But with the launch of our new five-year bond, with a high 5.25 percent rate, we are giving customers the opportunity to lock in this rate for the long term. It’s another example of Skipton offering value for the long term.”

The account can be opened with a balance of £500 and people can deposit up to £1million. Interest can be paid monthly or annually and savers must be aged 16 or over.

People can launch and manage the account in a branch, over the phone, online or by using the Skipton app.

The launch also comes at a time when billions of pounds are due to mature from other fixed-rate products across the market.

According to Skipton’s analysis of CACI savings data, more than £15billion is expected to mature this November.

Mr Mohsin said: “We know fixed rate accounts to the tune of £15billion are due to end and mature in November, so for those savers – and any others who can put some of their cash away for a fixed term – our new Five Year Bond means they can prolong the lofty savings rates we’re experiencing right now for the next half-decade.”

Bonds are a fixed rate savings product where a customer can pay in until the payment end date. In the case of Skipton, it’s November 8 – but then can’t continue to pay in throughout the term of their account.

Customers won’t be able to withdraw their money or close the account, but they are guaranteed a better interest rate than is available with an easy access account.

But while Skipton may be offering a more competitive deal, it isn’t currently topping the market for five-year fixes. JN Bank is currently taking the lead with an Annual Equivalent Rate of 5.8 percent.

The account can be opened with £1,000 and up to £500,000 can be invested. Interest is paid annually and withdrawals are also not allowed until the term ends.

Hampshire Trust Bank’s Five Year Bond (Issue 33) falls just behind with an AER of 5.6 percent. The account can be opened with a minimum deposit of £1 and up to £250,000 can be invested overall. Interest is paid annually and withdrawals are not permitted.

Commenting on the market, Rachel Springall, finance expert at, said: “One area of the market not blessed by rate rises this month is longer-term fixed bonds, with the average rate falling for the first time since March 2023, while the average longer-term fixed ISA rate stood still.

“This signals a turnaround for the longer-term fixed rate market, perhaps not too unexpected with Base Rate remaining on hold and the markets expecting rates to drop in the months ahead. Those savers considering a fixed bond or ISA may wish to act quickly to take advantage of the highest rates.”


#Skipton #Building #Society #launches #fixed #savings #account #interest #Personal #Finance #Finance

You May Also Like

More From Author

+ There are no comments

Add yours