Skipton Building Society has increased interest rates on its range of fixed rate bonds.
Its one-year bond now offers 1.21 per cent, a two-year bond at 1.45 per cent, a three-year at 1.61 per cent and a five-year at 1.86 per cent.
The society is also relaunching its 18-month Isa at 1.35 per cent and is increasing rates on its one-year and three-year Isas, now paying 1.21 per cent and 1.71 per cent, respectively.
Interest rates on all other fixed rate Isas offered by Skipton remain the same, including a five-year Isa paying 2 per cent, and are available online, in branch and by post.
Customers can deposit the annual Isa limit of £20,000 into Skipton’s fixed rate Isas.
The Society’s fixed rate bonds offer customers the chance to benefit from competitive returns over terms of one, two, three and five years. The minimum investment for each account is £500, up to a maximum of £1m, or £2m for joint accounts.
The features in Skipton’s new fixed rate bond range include investing up to £1m (£2m for joint applications), making additional investments for up to seven days after the account opening, and no withdrawals or closures allowed until maturity.
The details of Skipton’s new fixed rate Isa range are: once opened, provided you have not already subscribed to another cash Isa in the current tax year, customers can invest their 2018/2019 tax year allowance up to a maximum of £20,000.
Kris Brewster, Skipton’s head of products, said: “Skipton’s bonds and E-bonds allow customers to save up to £1m so we are pleased to offer increased rates across our entire range.
“Our fixed rate Isas continue to offer savers competitive rates despite the low rate environment, and the relaunch of our 18-month Isa gives people more choice to save over a period of time that suits them best. Our message to savers is that if you want to get a head start on tax-free saving, Skipton has an Isa for that.”
Jane Hodges, managing director at Money Honey, said: “I do feel it is important that providers supply products that meet this timeframe of one to three years where investment solutions are not likely to be suitable. In a decade of low interest rates this has not been easy and savers have struggled to achieve any decent returns.
“As an adviser, when looking at new products like this I always go back to National Savings as a benchmark to see what is being offered, although clearly it is a different business today than it used to be. When assessing these rates I have checked out the guaranteed growth bonds available today, which are currently 1.5 per cent for one-year bonds and 1.95 per cent for three-year bonds – clearly slightly higher than Skipton.
“There are also better rates around from banks, but these are often for smaller amounts or for limited regular savings, so it depends on what levels of deposits are likely.”