Skipton Building Society has launched a new 18-month fixed-rate ISA offering a market-leading interest rate of 2.75%. The account requires a minimum initial deposit of £10,000, but the rate is fixed for the entire term. According to Moneyfacts.com, this account tops the list for best 18-month fixed-rate ISAs.
A saver depositing £10,000 could earn £368 in interest over the term. Interest is calculated daily and paid on the anniversary of account opening. The offer is available until 22 September 2022, and savers can deposit up to their full ISA allowance of £20,000 for the 2022/23 tax year. Transfers from existing ISAs with Skipton or other providers are permitted.
The account is open to UK residents aged 16 or over and can only be managed online. Joint accounts are not available. Once deposited, funds cannot be partially withdrawn; however, savers may cancel the account and withdraw the full balance or transfer it to another ISA. Doing so incurs a fee of 90 days' interest, which could result in receiving back less than the amount paid in.
After the 18-month term ends, the account automatically converts to a one-year fixed-rate cash ISA unless the saver decides otherwise. Savers have 21 days after maturity to choose their next steps. The one-year fixed-rate cash ISA currently offers 1.6% annual interest or 1.59% monthly, which Moneyfacts also describes as market-leading.
Rachel Springall, finance expert at Moneyfacts, commented: “Savers looking to utilise their ISA allowance may find the Cash eISA Saver from Skipton Building Society an attractive choice as it pays a market-leading rate of 1.60 percent and offers flexibility.”
