5th June 2015
Skipton Building Society has increased the interest it pays on its longer-term fixed rate ISAs and bonds.
The building society has boosted its rate on three and five year fixed rate ISAs and bonds. Its three year Fixed Rate ISA will now pay 2% while the five year ISA will pay 2.3%.
The fixed rate bonds, which can be bought in branch or by post, and the fixed-rate e-bond, which can be bought online, have also had their rates increased. The three year bond now offers 2% while the five year offers 2.3%.
Kris Brewster, Skipton’s head of products, said: ‘We’re pleased to offer increased rates for those looing to invest over a longer term. Our bonds and e-bonds allow customers to save up to £1,000,000 while our fixed rate ISAs continue to offer savers attractive rates despite the low rate environment.
‘The chance to keep more of their savings from the taxman, plus interest rate increases on longer term products, can only be good news for our customers.’
To qualify for the fixed-rate ISAs, a minimum opening balance of £500 must be paid in or transferred from another ISA. Once opened, a total of £15,240 can be paid in this tax year.
Early withdrawals from the ISA or closure of the ISA will result in the loss of 180 days interest for one and two years fixed rates, 240 days lost interest for three year ISAs and 365 days of interest for five year ISAs.
If there is insufficient interest accrued on the savings to pay back the interest, it will be taken from the capital meaning you could get back less than you put in.