Skipton Building Society  

Skipton increases rates on bonds and Isas

Skipton increases rates on bonds and Isas

Skipton Building Society has increased rates on its bonds and Isas.

The society's one-year and five-year bonds now offer 1.25 per cent and 2.01 per cent, respectively, and the five-year Isa now offers 2.01 per cent.

Customers can deposit the annual Isa limit of £20,000 into Skipton's Fixed Rate Isas.

Kris Brewster, head of products at Skipton, said: "Skipton's new range of fixed rate bonds and Isas offers savers competitive rates and provides customers with a wide range of choice so they can take full advantage of tax-free savings over a period of time which suits them best."

The minimum investment for each account is £500, up to a maximum of £1,000,000 or £2,000,000 for joint accounts 

Martin Bamford, chartered financial planner and managing director for Surrey-based Informed Choice, said: "With the base rate due to rise again this year, we expect to see banks and building societies starting to increase their rates, especially on fixed term products.

"Relative to the market, these rates from Skipton aren't all that attractive. By shopping around, savers can get 2.05 per cent on a one-year fixed bond via Atom Bank.

"Vanquis Bank Savings are offering 2.66 per cent on a five-year bond, although we would encourage savers to avoid tying up their money for such a long time.

"There is a great deal of uncertainty around the economic, inflation and interest rate outlook.

"With a Brexit deal still to be struck, tying up your money with a relative low interest rate for five-years could prove to be a costly mistake."

aamina.zafar@ft.com