Skipton increases rates on one-year ISAs and fixed rate bonds

Skipton Building Society has launched a new range of Fixed Rate ISAs and Bonds which include rate rises on short term savings.

The interest rate on the One Year Fixed Rate ISA and One Year Fixed Rate Bond has increased to 1.50% while the rate on the Two Year Fixed Rate bond has increased to 1.80%. Skipton’s five year products on both ISAs and Bonds are still paying 2.75%.

Skipton’s new Fixed Rate ISAs, which now have an annual limit of £15,000, are an ideal way to stop the taxman eating away at your savings and can be opened either online or in branch. The one, two and three year ISAs now offer interest rates at 1.50%, 1.80% and 2.20%, respectively, with the one, two and three year Bonds paying 1.50%, 1.80% and 2.15%, respectively.

Skipton have also announced that this range of Fixed Rate ISAs and Bonds will see the launch of Anniversary end dates, meaning these products will be the exact term (e.g. one year), instead of having a fixed end date.

Kris Brewster, Skipton’s Head of Products, said: “The new ISA rules mean that people can put substantially more of their savings into a tax free wrapper, up to £15,000. We have already seen a record number of ISA customers attracted to the Skipton since the announcement of the New ISA and we are continuing to offer savers attractive rates, including increased interest rates on a number of short-term products.

“Despite constant speculation of a possible increase in the Bank of England base rate, we still have the impact of a prolonged low base rate environment and savers continue to seek better rates. The chance to keep more of their savings from the taxman, plus interest rate increases on certain products, can only be good news for our customers.”

Anyone wishing to find out more about Skipton's full range of savings accounts can visit the Society's savings pages at skipton.co.uk.