Hope for savers as 'competitive' interest rates on savings emerge – but there's a warning

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Hope for savers as 'competitive' interest rates on savings emerge – but there's a warning

The new savings options include 15-month and 30-month Fixed Rate ISAs, which offer 0.85 percent and 0.95 percent respectively. Meanwhile, Skipton B

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The new savings options include 15-month and 30-month Fixed Rate ISAs, which offer 0.85 percent and 0.95 percent respectively. Meanwhile, Skipton Building Society is also offering a 30-month Fixed Rate Bond with an interest rate of 1.15 percent – the same rate currently offered on NS&I’s variable rate Income Bonds.

This offers a variable rate ranging form 0.70 percent to 1.01 percent, with the rate depending on the amount of savings in the account.

On Wednesday September 2, the building society offered a rates between 0.15 percent to 0.85 percent gross pa/ER variable on the eSaver Issue 15.

Maitham Mohsin, Skipton’s Head of Savings, said: “We’re delighted to offer a refreshed savings range and our new 15 month and 30 month fixed term ISAs go straight to the top of the Best Buys, while our 30 month Bond compares directly with NS&I’s offering but gives savers the comfort of a fixed rate for its term rather than variable where rates can fall as well as increase.

“Skipton is proud to offer customers a wide choice of great value savings products and a wide choice of ways in which to open them, including the Skipton App, Skipton Link video service, through our website, and by post.

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“Our UK branch network is welcoming more and more customers back to a safe environment with social distancing and PPE in place and there are now five different ways a branch colleague can open an account for a customer, including there and then in a separate room in the branch.”

Rachel Springall, Finance Expert at Moneyfacts, commented on the new savings deals.

She told Express.co.uk: “Savers looking for a competitive fixed rate over the next year or so will be delighted to see these new deals from Skipton Building Society.

“The 30-month bond sits in the top rate tables at 1.15 percent for fixed rate bonds over a similar term.

“Those savers who want more flexibility with their cash may find the eSaver deal attractive, particularly if they have a larger pot as it pays up to 1.01 percent.

“ISA savers will find the 15-month ISA highly attractive as it sits neck and neck with market-leading one-year fixed ISAs offered by Hampshire Trust Bank and Paragon Bank at 0.85 percent.

“Those who are happy to lock their money away for longer will find the 30-month fixed ISA pays an attractive 0.95 percent.”

However, Ms Springall warned savers may want to act fast.

“It’s positive to see some signs of life in the savers market over the past month, but as with any lucrative offer, its important savers don’t wait around for too long to take advantage,” she said.

Elsewhere on the savings scene, Skipton Building Society currently offers the option of saving in the easy access account titled Online Bonus Saver Issue 6.

This account pays 0.95 percent gross pa/0.70 percent AER variable (including a 0.50 percent bonus for the first six months.

Savings can start from £1, and up to £1million can be put into each account.

This particular account is available to UK residents who are aged 16 or older, and they can only be opened and managed online.

Couples may be interested to hear that joint accounts are allowed with regards to this account.

Seeking out market-leading interest rates is something which Rachel Springall, Finance Expert at Moneyfacts.co.uk has recently spoken about.

Her comments came after a Moneyfacts analysis found consumers could earn £228 over one-year in the top easy access account versus the lowest.

“Those who do have some savings to one side may be disappointed to see interest rates have fallen to record lows and may decide that convenience with their cash is key right now,” she said.

“Savers may have their cash stored in an easy access account with a familiar brand, such as a high street bank, and just by switching they could earn over £200 a year from the worst rate to the best in the market.”

Interest rates on savings accounts have been slipping in recent months, with further drops being announced following the two successive cuts to the Bank of England Base Rate back in March this year, in response to the coronavirus pandemic.

Currently, the Bank Rate is being maintained at a historic low of 0.1 percent. 



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