NS&I’s Income Bond paid a market-leading 1.16% AER (1.15% gross), offering savers a glimmer of hope as other providers cut and pulled their rates as the coronavirus pandemic unravelled.

But in the past few weeks, savings rates have been climbing steadily and now, for the first time in three months, the NS&I Income Bond – an easy access product – has been knocked off the top spot.

Skipton Building Society has launched its Online Bonus Saver (issue 7), paying 1.20% AER/gross – a comfortable lead on NS&I’s offering.

However, savers should note that the rate includes a 0.50% bonus for 12 months so it’s best to diarise to compare deals ahead of this date.

The account can be opened with a minimum £1, a more affordable amount than the minimum £500 needed to open NS&I’s Income Bond.

Sponsored

How life insurance can benefit your health and wellbeing over the decades

Sponsored by Post Office

The Skipton account allows unlimited further additions and withdrawals can be made at any time. One possible drawback is that it can only be opened and managed online.

Interest is paid on the anniversary of the account being opened.

Does this signal the start of further easy access rate rises?

Data site Moneyfacts said while other savings providers could follow Skipton’s lead to launch chart-topping rates or increase rates on offer, it’s not guaranteed, particularly in light of the current pandemic.

As such, savers need to act quickly to secure the top deals as they’re released, to avoid missing out on short-lived, best buy deals.

See YourMoney.com’s The savings accounts paying the most interest for a monthly updated list of top rates available.