Skipton Building Society has launched a new Cash ISA paying an "attractive" 5% interest rate. The account, which pays the fixed rate for five years, gives savers the opportunity to secure a guaranteed tax-free return. Skipton has also launched a three-year fixed-rate Cash ISA paying 4.87% AER.
Guaranteed returns for savers
Both products are designed to help savers lock away their money for a fixed term and benefit from a guaranteed return. Available to both new and existing customers, the accounts can be opened online, through the Skipton app, in branch, by post or by phone.
Alex Sitaras, head of savings and 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."
Account details and rates
Mr Sitaras added: "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."
The five-year fixed rate Cash ISA pays interest annually (5%) or monthly (4.89%). No partial withdrawals are allowed, and savers can launch the account with a minimum of £1.
The three-year fixed-rate Cash ISA also pays interest either annually (4.87%) or monthly (4.76%). No partial withdrawals are allowed, and savers can launch the account with a minimum of £1.
How the accounts compare
For five-year fixed-rate Cash ISAs, Shawbrook Bank takes the lead with 5.25% AER. The account can be opened with a minimum deposit of £1,000, and interest can be paid monthly. Earlier access will incur a 360-day loss of interest.
Tandem Bank places just behind with 5.13% AER. Interest can also be paid monthly, and there is no minimum opening deposit. Earlier access is permitted only on closure, subject to a 365-day loss of interest.
For three-year fixed-rate Cash ISAs, Tandem Bank takes the top spot with 5.13% AER. There is no minimum opening deposit, and interest can be paid monthly. Earlier access is permitted only on closure, subject to a 270-day loss of interest. Close Brothers Savings places just behind with 5.11% AER. A larger minimum deposit of £10,000 is required to open the account, and interest is paid annually. Earlier access is permitted only on closure, subject to a 270-day loss of interest.
This tax year, Cash ISA rules allow people to save up to £20,000 tax-free across one or multiple eligible accounts. From April 2027, the Cash ISA allowance will drop to £12,000 for under-65s, while the limit for Stocks and Shares and Innovative Finance ISAs (non-Cash ISAs) will remain at £20,000. The Cash ISA allowance for those aged 65 and over will remain at £20,000.
