Skipton Building Society has launched a new Cash ISA Tracker, which will pay savers 0.46 per cent above the bank base rate. The current base rate is 0.75 per cent, which means the Skipton ISA will pay 1.21 per cent in interest.
When the base rate changes, any increase or decrease will be applied to the account within 14 days. The base rate was last changed in August 2018, when the Bank of England’s Monetary Policy Committee voted to increase it from 0.5 per cent to 0.75 per cent. Most economists have predicted further rate rises in 2019, although any rate change will be subject to economic growth and inflation.
Skipton’s tracker ISA will be available until 6 May 2020, after which time the product will be treated as an easy access cash ISA account.
“With continued speculation of a possible base rate rise in the coming months, and with so few tracker savings accounts out there, we’ve decided to offer our customers something different,” said Kris Brewster, Skipton’s head of products. “We want all people to feel like they’re in a good place with their savings.
“Brexit has caused continued uncertainty about the future of interest rates, and tracker products are currently fairly unusual in the savings market, but Skipton has been helping people to save since 1853 so we know how important it is for people to have flexibility with their savings.”
Savers can make no more than three withdrawals per year from the tracker ISA, and transfers from other ISA providers are allowed.
Skipton has also introduced a new 90-day notice savings account paying 1.2 per cent. This product is available in branch, by telephone, or by post. No immediate withdrawals are allowed, but savers can remove their money with 90 days’ notice.