Skipton launches 'special edition' savings accounts

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Skipton launches 'special edition' savings accounts

Skipton Building Society has launched a range of special edition savings products requiring a minimum balance of £20,000. 

The 16-month Fixed Rate Bond and Isa offers savers a rate of 1.5 per cent, while the variable rate Special Edition Cash Isa Tracker currently offers 1.36 per cent. 

The Cash Isa Tracker offers 0.61 per cent above Bank Base Rate until June 6, 2021, after which it will mature into an easy access Cash Isa paying 1.36 per cent. 

The building society has also introduced tiered accounts across its range of fixed rate bonds and Isas, with savers depositing £20,000 and above to get an additional 0.10 per cent compared with those with savings between £500 and £19,999.

Maitham Mohsin, head of savings and partnership products at Skipton Building Society, said: "Skipton continues to offer competitive rates with a wide range of choice to enable savers to take full advantage of tax free savings over a period of time which suits them best.

"We want everyone to feel like they’re in a good place with their savings. Skipton has been helping people to save since 1853 so we know how important it is for people to have flexibility with their savings."

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: "Predicting interest rate rises is notoriously difficult, so it’s usually best not to base your financial plans around hunches and hopes. Instead you should split your cash into different pots, depending on when you are likely to need it. You can then keep some in an easy access account, and fix the rest for the periods that suit you best.

"However, there will be some people who are so concerned about potential rate rises that they cannot bring themselves to fix any of their savings for a year or two, in which case tracker accounts provide an alternative to easy access."

She added: "If you are considering this account, it’s worth bearing in mind that the most competitive one-year fixed rate Isa is offering 1.74 per cent, so we would need to see rates rise 0.38 per cent within a year in order for the Skipton tracker to match the fixed rate, which is higher than current expectations.

"In addition, the Skipton account has a number of restrictions – the £20,000 minimum and one withdrawal a year – which means it won’t appeal to everyone."