Skipton has today (5 June) launched a Nisa-ready fixed rate Isa range with a one-year rate of 1.4 per cent, two-year rate of 1.6 per cent and three-year rate of 2.2 per cent.
Once opened the 2014 to 2015 Isa allowance of £5,940 can be placed into the account. From 1 July 2014 the maximum investment for the 2014 to 2015 tax year will increase to £15,000.
The rules are also changing from this date so investors can split their new Isa allowance between a Cash Isa and a Stocks & Shares Isa, as long as they do not subscribe to more than one Cash Isa and more than one Stocks & Shares Isa each year.
Skipton will investors to top up their Fixed Rate Cash Isa 2014 to 2015 allowance to £15,000 between 1 July and 31 July 2014. No transfers in will be allowed at this time. The changes are subject to the Budget announcement becoming law.
The society is also launching a new fixed rate E-Bond range, with rates paying up to 3 per cent. With terms of one, two, three or five years the minimum investment required for each account is £500, up to a maximum of £1m, or £2m for joint accounts.
Additional investments can be made into the bond until it becomes a closed issue, which may be at any time and without notice. No withdrawals are allowed until maturity.
The one-year bond has an annual rate of interest of 1.5 per cent gross or monthly rate of 1.49 per cent. The two-year deal has an annual interest rate of 1.7 per cent or monthly rate of 1.69 per cent while the three-year deal is 2.2 per cent a year or 2.18 per cent a month. The five-year bond offers annual interest of 3 per cent or monthly interest of 2.96 per cent.
Kris Brewster, head of products at Skipton, said: “The impact of a prolonged low Bank of England base rate environment means savers are continually looking for better rates and we are delighted to continue to focus on offering competitive longer term fixed rates, including our five year E-Bond, which offers 3 per cent.”
