Skipton Building Society is offering 3.5% interest rate – but are you eligible?

Skipton Building Society has launched a new savings deal paying 3.5 percent. The Building Society has launched an “Existing Member Regular Saver” account which is being considered as a “best buy”.

While this account is offering a high interest rate, there are stringent rules on eligibility.

This account is only available to UK residents aged 16 or over, that hold a continuous membership with Skipton Building Society.

This can include a Savings Share account or a Mortgage.

These memberships must have been started on or before August 16, 2021 with a minimum balance of £1.

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The Existing Member Regular Saver account itself can only be opened and managed online.

A minimum balance of £1 is needed for it but there is no minimum monthly subscription. Joint accounts are also not allowed.

Only one Online Existing Member Regular Saver account can be held under one name.

Interest is earned daily on this account but it can only be paid on the anniversary of the account opening.

Savers may want to jump on these kinds of deals when they can as recently, the Bank of England elected to keep the base rate at 0.1 percent.

A spokesperson from Nutmeg reflected on this and commented on how interest rates are unlikely to rise any time soon: “The decision to keep interest rates where they are makes sense in light of where the economy is right now.

“COVID-19 restrictions have only recently been lifted and people are gradually getting out more, but life still hasn’t returned to the way it was pre-pandemic and that means lower spending and less economic activity in general.

“The economy is only just starting to rebuild after suffering the biggest blow since the second world war. Consumer price inflation reached 2.5 percent in June (over the past 12 months), which is above the Bank’s target of two percent.

“That makes the cost of living higher, which can discourage people from spending – and higher interest rates on top would make borrowing more costly and potentially hurt households.

“It’s a delicate balancing act and the Bank of England doesn’t want to upset the economic recovery by making changes too quickly. At the moment, economists suggest that interest rates won’t be raised until late 2023 or early 2024.”

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