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Skipton Building Society has unveiled its Online Bonus Saver account, which will pay 1.20 percent, including a 0.50 percent bonus for the first 12 months. This means that for the first time since May, the government-backed NS&I Income Bond has been knocked off the top spot as the leading easy access account for savers. The NS&I Income Bond currently has an offering of 1.16 percent, which has led the pack amid financial turbulence.
The new Online Bonus Saver will allow customers to open from £1, which is well-suited to those embarking upon a savings journey, perhaps even for the first time.
And with savings permitted up to £1million, this is likely to provide a suitable option for many savers across the country.
He said: “We want to continue to help the nation save and are delighted to introduce our new Online Bonus Saver at 1.20 percent.
“This product takes us straight to the top of the Best Buys for instant access, overtaking NS&I’s 1.16 percent income bond.
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“We know everyone is finding the current situation difficult, but we’re proud to continue our commitment to offer customers great value savings products.
“The new Online Bonus Saver will give customers comfort that their money is in a good place, helping them to save for the future and secure their own homes.”
With the announcement from Skipton, banking customers may wonder if other providers will follow suit with higher interest rates than before.
Undoubtedly, these have been affected by the COVID-19 crisis and the unprecedented decision of the Bank of England to lower its base rate.
The central bank first took the decision in March to lower its base rate to 0.1 percent, which has had a knock on effect for familiar providers.
This is all, however, dependent on the speed of economic recovery of the UK going forward.
She said: “This is very exciting news for savers as it has been a few months since there was a rate this high offered in the easy access market to new customers.
“There appears to be some green shoots of life in the savings market and if consumers would like to take advantage then they may wish to act quickly.
“There has been a predominant uplift in rates amongst challenger banks and building societies, but most of the rate rises from the challengers have been on short-term fixed bonds.
“It will be interesting to see whether this trend continues in the months to come, but it just goes to show that savers would be wise to consider the more unfamiliar brands for the best rates.”
The base rate of the Bank of England remains at 0.1 percent, but savers hope easy access rates will rebound in the near future.
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