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Skipton and Scarborough in joint savings account launch

18th August 2009 Print
Skipton Guernsey Limited and Scarborough Channel Islands Limited, who, subject to regulatory approval, are soon to amalgamate to form a single specialist savings and mortgage bank on Guernsey, have launched an innovative new deposit account, called the International Bonus Account, which is designed to reward those customers who open their accounts with new money.

On balances of £100,000 or more, for example, savers will earn a minimum rate of 2.00% gross p.a./AER and accounts opened with new monies will earn an additional 1.00% bonus, which is payable on the first interest payment date of 31 August 2010.

During the following year, up until 31 August 2011, the account will pay a minimum of 1.00% above the Bank of England base rate and any Base rate rises will automatically be added from the first day of the month following the change.

Between 01 September 2011 and 31 August 2012, the interest rate payable is guaranteed to track and match UK Base Rate, whilst after 01 September 2012, the account will offer a variable interest rate structure.

Commenting on the new International Bonus Account, managing director Alan Bougourd said, “Savers have had to endure hard times as UK Base Rate has fallen to a record low. Now with this new account, we are offering peace of mind so savers will know that they have a guaranteed minimum return in the first year and that the rate thereafter will rise along with any Bank of England base rate changes into 2012.”

The new variable rate account can be opened with a minimum balance of £10,000, with balances of £10,000 to £49,999 currently earning 1.75% gross/AER, balances of £50,000 to £99,000 will currently earn 1.90% gross/AER and balances of £100,000 to the £5 million maximum will currently earn 2.00% gross/AER. The set rates are the minimum rates guaranteed to be paid until 31.08.09; in addition, all tiers will attract an introductory bonus of 1%, which is payable on 31.08.10 for new funds only.

Alan Bougourd adds, “This innovative new account offers immediate access to funds, so savers needing to make withdrawals can do so at any time without an interest penalty.”

Savers will be reassured to know that their accounts are backed by Skipton Building Society, the fifth largest Building Society Group in the UK, with approximately 860,000 members and over £16bn of assets.