Skipton launches new fixed rate Isa range

1st July 2014

Skipton Building Society has launched a new fixed rate ISA range to coincide with the new £15,000 limit. The rate on the one year fixed rate ISA has increased to 1.45%. The five year product is still paying 2.75%. It also plans to launch a new range of branch and online fixed rate bonds, paying up to 2.75%.

Skipton’s new fixed rate ISA range requires a minimum opening balance of just £500 by cash (branch only), debit card, cheque, internal transfer from another Skipton Building Society non ISA account or ISA transfer from another provider

Once opened you can invest your 2014/2015 tax year allowance of to a maximum of £15,000 until it becomes a closed issue

Full balance withdrawals, including transfers to other ISA managers, and subsequent closure of your account can be made subject to the loss of 180 days (240 days for the 5 Year term) interest; the loss of interest will be taken from the capital invested if there is insufficient accrued interest on the account. This means that you may get back less than you paid in;

Key product details – Fixed Rate and Online Fixed Rate Cash ISA

1 Year Fixed Rate Cash ISA to 10 August 2015 Annual Interest Option  1.45% tax free pa/AER
Monthly Interest Option  1.44% tax free pa/1.45% AER
2 Year Fixed Rate Cash ISA to 10 August 2016 Annual Interest Option  1.80% tax free pa/AER
Monthly Interest Option  1.79% tax free pa/1.80% AER
3 Year Fixed Rate Cash ISA to 10 August 2017 Annual Interest Option  2.20% tax free pa/AER
Monthly Interest Option  2.18% tax free pa/2.20% AER
5 Year Fixed Rate Cash ISA to 10 August 2019 Annual Interest Option  2.75% tax free pa/AER
Monthly Interest Option  2.72% tax free pa/2.75% AER

The Society is also launching a new fixed rate bond range, with rates paying up to 2.75%. Rates are the same on branch and online versions.

Key product details –Fixed Rate and Online Fixed Rate Bonds

Bond Term Balance Tiers Annual Interest Option Monthly Interest Option
1 Year Fixed Rate Bond – Fixed until 10 August 2015 £500 plus (no tiers apply)  1.45% Gross pa/ AER  1.44% Gross pa/ 1.45% AER
2 Year Fixed Rate Bond – Fixed until 10 August 2016 £500 plus (no tiers apply)  1.70% Gross pa/ AER  1.69% Gross pa/ 1.70% AER
3 Year Fixed Rate Bond – Fixed until 10 August 2017 £500 plus (no tiers apply)  2.15% Gross pa/ AER  2.13% Gross pa/ 2.15% AER
5 Year Fixed Rate Bond – Fixed until 10 August 2019 £500 plus (no tiers apply)  2.75% Gross pa/ AER  2.72% Gross pa/ 2.75% AER

Kris Brewster, Skipton’s head of products, says: “The month of July brings an excellent opportunity for our customers to top up their Fixed Rate ISA to the new £15,000 limit and, therefore, keep much more of their savings in a tax free wrapper.

“Following the Budget, Skipton was the first UK financial institution to announce that we were NISA-ready and gave a commitment to our customers that any FRISA’s opened from the 17th of March and were impacted by the Budget announcement, they would be able to top up their Fixed Rate ISAs to the new £15,000 limit.”

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