The Skipton Building Society is to replace its existing cash Isa and fixed-rate bonds with new products paying a higher rate of interest.
The new rate for cash ISAs will be 1 per cent, an increase of 0.15 per cent on the previous 0.85 per cent rate.
Skipton’s two-year fixed rate bond will pay an interest rate of 1.30 per cent, an increase on the previous bond, which paid 1.10 per cent.
To put that into context, a UK government bond with a term of two years to maturity pays 0.23 per cent at the time of writing.
Kris Brewster, Skipton’s head of products, said: “We’re also increasing our fixed savings rates to give people a better return on their money.
“We know savers have had a tough time and the economic climate shows little sign of improving. But we’re trying to do all we can to encourage people to think of their life ahead and make sure they have a range of saving pots working as hard as they can for them.”
Skipton announced an increase in mortgage lending in its most recent set of results
david.thorpe@ft.com
