New Skipton bond gets better with age

A new escalator bond, launched today by Skipton Building Society, rewards savers for their loyalty with rates that increase over time.

The Bonus Access Bond tracks the Bank of England’s base rate and offers a starting rate of 5.75% which will increase every six months to 7.25% in two years’ time, based on current rates. As an added bonus, savers can withdraw money from their investment at any time.

Steve Aldous, general manager at Skipton Building Society, commented, “The Bonus Access Bond offers a cracking initial rate of 5.75% which, like most things, gets better with age. The rate increases every six months plus, unlike a standard bond, savers can access their money at any time. Therefore, they really stand to gain from this account as it is far more flexible than any fixed rate bond currently on the market.”

Bonus Access Bond

The account will pay a rate of 4.00% and this rate will be adjusted in line with any changes to the Bank of England’s base rate. In addition, the following bonus interest rates will be payable subject to no withdrawals being made by the customer in each period:

1.75% from date of opening to midnight, 3 July 2008
2.25% from 4 July 2008 to midnight 3 January 2009
2.75% from 4 January 2009 to midnight, 3 July 2009
3.25% from 4 July 2009 to midnight, 3 January 2010

Minimum investment £500, maximum investment £100,000, by cheque or transfer only
Withdrawals allowed any time, without penalty. Withdrawn funds cannot subsequently be replaced. Any withdrawals in each six monthly period will exclude the customer from the bonus rate for that period.