Skipton Building Society has launched a new 5 Year Fixed Rate Cash ISA with a guaranteed rate of 5% for five years. The account, announced on Thursday, October 8, is available to both new and existing customers.
The building society said the new account "gives savers the opportunity to secure a guaranteed tax-free return for five years, providing confidence and stability in an uncertain savings market".
Account features and availability
The account offers 5.00% AER/tax-free p.a. (fixed), with interest paid annually at 5% or monthly at 4.89%. No partial withdrawals are permitted, and savers can pay in up to £20,000 for the current tax year, plus ISA transfers in until the last paying-in date, November 11, 2026.
The account has a minimum balance of £1 and a maximum of £1 million. It is available online, via the app, in branch, by post and by phone.
Additional product and market context
Skipton has also launched a 3 Year Fixed Rate Cash ISA, which pays 4.87% AER/tax-free p.a. (fixed). Interest is paid annually at 4.87% or monthly at 4.76%, with the same restrictions on partial withdrawals and maximum contributions.
Both accounts are "designed to help savers lock away their money for a fixed term and benefit from a guaranteed return", according to a press release from the building society.
Alex Sitaras, Head of Savings & Partnership Products at Skipton Building Society, said: "With savings remaining a priority for many households, our new Fixed Rate Cash ISAs give customers the opportunity to secure an attractive tax-free return while benefiting from the reassurance of a guaranteed rate for the term."
"Whether someone is building a nest egg, planning for a major purchase or simply looking to get more from their savings, fixed-rate accounts can provide certainty over returns and help people plan ahead with confidence."
"It's easy for cash to remain in an account that no longer offers good value. Taking the time to review savings regularly and switch to a more competitive rate can make a meaningful difference to returns over time."
"At Skipton, we believe people should have a fairer opportunity to make the most of their money. As a mutual, we're committed to helping members build long-term financial resilience through competitive savings products, alongside guidance and support such as My Money Reviews, Pension Health Checks and regulated financial advice."
Competing products on the market
The five-year option is one of several fixed rate cash ISAs offering rates of 5% or above. Close Brothers Savings's 5 Year Fixed Rate Cash ISA has an AER of 5.12%, with a minimum opening amount of £10,000 and interest paid yearly. It also offers a 2-year product with an AER of 5.05%.
Aldermore's 3 Year Fixed Rate Cash ISA has an AER of 5.03%, paid at £1,000, the minimum opening amount. More details on individual products and top options are available on Moneyfactscompare.co.uk.
