Skipton Building Society launches new easy access account with bonus interest rate

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Interest rates on savings accounts are something which many savers may well be keeping an eye on at the moment, particularly as the Bank of England Base Rate remains at a historic low of 0.1 percent. Recently, several new savings products have been added to the market, including an online account from Skipton Building Society.

The building society has recently launched the new savings account, the Online Bonus Saver.

Its full title on the website is Online Bonus Saver Issue 6.

At the time of writing, it offers 0.95 percent gross pa/0.70 percent AER variable.

This includes a 0.50 percent bonus for six months.

Without the bonus, the annual interest is 0.45 percent gross pa/AER.

On this account, interest is earned daily and it is paid after the six-month bonus period, and again on each anniversary of the account being opened.

However, it’s important to be aware that the interest rate is variable.

As Skipton Building Society explains on its website, this means the rate can go up or down.

Those who have at least £100 in the account will receive notification prior to the interest rate being reduced.

So, what are the rules when it comes to this account?

UK residents who are aged 16 or older can open this account, whether they are Skipton Building Society customers already or not.

This account can only be opened and managed online.

A person can save from £1 up to £1million per account.

Furthermore, couples may be interested to hear “joint accounts are allowed”.

This is an easy access savings account, meaning the saver can withdraw money or close the account online.

The individual does not need to give the society notice, and they won’t face penalties, Skipton Building Society confirms.

That said, there is one rule to note.

“For security reasons, you can’t withdraw money or close the account within 14 days of us receiving your first payment,” the website states.

“This applies to both new and existing customers.

This week, Rachel Springall, Finance Expert at Moneyfacts.co.uk, spoke about interest rates on savings accounts.

She said: “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.

“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.”

This figure is based on a deposit of £20,000, yearly interest not compounded, with the lowest easy access rate of 0.001 percent versus 1.15 percent offered by NS&I Income Bonds.

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