New Escalator Bond offering up to 6% AER from Skipton International
Longer term savers are being rewarded with a top level of interest, if they are happy to invest their savings for up to five years with Skipton International's new International Escalator Bond which offers a rising rate of interest over each year of the Bond's life.
Interest rates rise over the course of the account's life to reach a top annual rate of 6% AER or 5.90% gross monthly in the fifth year. During year four, savers will earn 5.00% AER with the annual interest option or 4.90% gross monthly, in year three the return is 4.00% AER or 3.90% gross monthly, whilst during year two, the account pays 3.00% AER or 2.90% gross monthly and 2.60% AER or 2.50% gross monthly in year one.
However, for those who may require the additional flexibility of earlier access to funds, the International Escalator Bond offers an opportunity each year for a penalty free withdrawal for 14 days after annual interest is paid out in January.
Created at the end of September this year following the amalgamation of Skipton Guernsey and Scarborough Channel Islands, Skipton International now has a savings account for everybody, with both monthly and annual income options available on a broad range of accounts. Customers can choose from immediate, easy access products to five year bonds.
With a minimum invest of £10,000 and an upper limit of £5 million, the account can cater for a broad range of customers. Annual interest is paid out on 06 January.
Introducing the new account, commercial director Jim Coupe said. "Many savers are worried about returns during this period of low UK Bank of England Base Rate. We have responded to this challenge again at Skipton International with the launch of our International Escalator Bond, an account which will pay up to 6% AER in its final year and offer the flexibility of a monthly income and penalty free access each year in January during a 14 day window."
Skipton International Ltd offers a range of sterling, euro and US dollar accounts and is part of Skipton Building Society, the fifth largest in the UK with over £15 billion assets.