How to earn 3.5% interest on your savings
The account, called the Existing Member Regular Saver, is only available to existing Skipton members who have held continuous membership with Skipton since on or before 16 August 2021.
Account holders can save up to £250 per month in the account, with a maximum balance, excluding interest, over the year of £3,000. The account pays 3.50% interest fixed for 12 months and defaults into an Easy Access account at maturity. It can be opened online or in branch.
Maitham Mohsin, Skipton’s head of savings, said: “We’re delighted to offer our loyal members an exclusive, market-leading account. At Skipton we have been helping savers find a good place for their money since 1853 and although interest rates have started to recover over recent weeks, it’s a tough time for savers with the Bank of England Base rate at an historic low.
“Despite this, we strive to look after our members savings – for the opening five months ending 31 May 2021, Skipton paid their savers an average of 0.71%, which was 0.39% higher than the market average and this market leading Regular Saver, paying 3.50% is another example of how we look after our members.
“As well as the market leading rate, our regular saver is a great way to encourage our members to establish a healthy and regular savings habit, the need to which has become even more apparent over the last 18 months with all the uncertainties materialising from the Covid-19 pandemic.”
Regular savings accounts require you to put money away each month with interest paid yearly. They usually offer higher interest rates than fixed or easy-access savings accounts, but they normally have rigid terms and conditions. For example, there will be a cap on monthly contributions and limits on withdrawals.
Skipton’s move is in contrast to other savings providers which are cutting the interest rates on regular savers. HSBC and First Direct both dropped the interest rate offered on their respective Regular Saver accounts from 2.75% to 1% in November last year.