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| Version 3 | Version 4 |
|---|---|
| Skipton launches seven-year savings bond | Skipton launches seven-year savings bond |
| (3 days later) | |
| A savings account paying a table topping 3.5% interest has been launched – but you have to tie your money up until the year 2020. | A savings account paying a table topping 3.5% interest has been launched – but you have to tie your money up until the year 2020. |
| Skipton building society has unveiled what it calls a "pioneering" seven-year fixed-rate savings bond, which offers a rate that is seven times the current Bank of England base rate of 0.5%. | Skipton building society has unveiled what it calls a "pioneering" seven-year fixed-rate savings bond, which offers a rate that is seven times the current Bank of England base rate of 0.5%. |
| The savings account went straight to the top of the best-buy tables; the next highest fixed-rate bonds on the market – five-year products from FirstSave and Shawbrook Bank – pay 2.9%. | The savings account went straight to the top of the best-buy tables; the next highest fixed-rate bonds on the market – five-year products from FirstSave and Shawbrook Bank – pay 2.9%. |
| The "limited edition" account has added to hopes that savings rates could finally be on the way up. In the past few days several institutions, including Halifax and Kent Reliance, have increased some of their rates. | The "limited edition" account has added to hopes that savings rates could finally be on the way up. In the past few days several institutions, including Halifax and Kent Reliance, have increased some of their rates. |
| These changes may suggest that recent rises in money market "swap rates" are finally starting to feed through to savings rates. | These changes may suggest that recent rises in money market "swap rates" are finally starting to feed through to savings rates. |
| The Skipton account is the first seven-year bond to be launched in as many years, according to financial data provider Moneyfacts. | The Skipton account is the first seven-year bond to be launched in as many years, according to financial data provider Moneyfacts. |
| It allows people to invest between £500 and £10,000 (or £20,000 for joint applications), either in a single lump sum or a series of deposits, until the account is withdrawn from sale. | It allows people to invest between £500 and £10,000 (or £20,000 for joint applications), either in a single lump sum or a series of deposits, until the account is withdrawn from sale. |
| No withdrawals are allowed until the account matures in September 2020, so this is not an account for money you may need to access any time soon – or even not so soon. The bonds will mature into a "competitive" easy access account. | No withdrawals are allowed until the account matures in September 2020, so this is not an account for money you may need to access any time soon – or even not so soon. The bonds will mature into a "competitive" easy access account. |
| While the headline rate is 3.5%, an option offering interest paid monthly rather than yearly is also available. This pays 3.45%. | While the headline rate is 3.5%, an option offering interest paid monthly rather than yearly is also available. This pays 3.45%. |
| Kris Brewster, head of products at the Skipton, said: "Not only is the interest rate on this new account several times higher than Bank base rate, it's also inflation-beating, making it a serious option for people looking to lock away their savings for a little bit longer to ensure they work harder for them. | Kris Brewster, head of products at the Skipton, said: "Not only is the interest rate on this new account several times higher than Bank base rate, it's also inflation-beating, making it a serious option for people looking to lock away their savings for a little bit longer to ensure they work harder for them. |
| "In fact, given that the rate is higher than many mortgages currently available, it is potentially cost effective for anyone who has a lump sum and isn't quite sure what to use it for – to consider investing it in the bond with a view to paying down their lower rate mortgage at a later date, when their bond matures." | "In fact, given that the rate is higher than many mortgages currently available, it is potentially cost effective for anyone who has a lump sum and isn't quite sure what to use it for – to consider investing it in the bond with a view to paying down their lower rate mortgage at a later date, when their bond matures." |
| Top savings accounts | Top savings accounts |
| Britannia | Britannia |
| Yorkshire BS | Yorkshire BS |
| ICICI Bank UK | |
| Powered by MoneySupermarket for the Guardian | Powered by MoneySupermarket for the Guardian |