The launch comes as savings providers compete to attract deposits with fixed-rate and easy-access accounts. While Skipton’s new products offer a guaranteed interest rate throughout their terms, other providers currently offer higher returns, with different minimum deposits and withdrawal conditions.
New Skipton Accounts Offer Fixed Rates for Three or Five Years
According to the Daily Express, Skipton’s five-year Fixed Rate Cash ISA pays 5.00% interest annually, or 4.89% when interest is paid monthly. Its three-year alternative offers 4.87% annually or 4.76% monthly.
Both accounts require a minimum opening deposit of £1 and allow balances of up to £1 million. Customers can apply online, through the Skipton app, at a branch, by post or over the telephone.
The accounts accept transfers from existing ISAs, although payments must be completed by 11 November 2026. Partial withdrawals are not permitted during the fixed term, a restriction customers will need to consider before depositing their savings. Alex Sitaras, Skipton’s head of savings and partnership products, said the accounts were intended to give customers certainty over their returns.
“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.”
He also encouraged savers to review existing accounts regularly, noting that money can remain in products that no longer offer competitive returns. Founded in 1853, Skipton is Britain’s fourth-largest building society. It provides mortgages, savings products and financial advice through a network of 82 branches.
Rival Providers Offer Higher Rates As ISA Allowance Changes Approach
According to the Daily Express, Shawbrook Bank currently offers a five-year fixed-rate Cash ISA paying 5.25% AER, ahead of Skipton’s 5.00%. Opening the Shawbrook account requires at least £1,000, while early access incurs a penalty equivalent to 360 days’ interest.
Tandem Bank offers a five-year ISA paying 5.13% AER without a minimum opening deposit. Early access is available only by closing the account, subject to a 365-day interest penalty.
For three-year fixed-rate ISAs, Tandem also offers 5.13% AER, while Close Brothers Savings pays 5.11% AER with a £10,000 minimum deposit. Both impose a 270-day interest penalty for early closure.
Meanwhile, GB News reports that Chip’s Smart Cash ISA pays 4.72% AER with easy access. Its rate includes a 1.22% AER bonus lasting 12 months, after which the return falls. The accounts arrive ahead of changes to Cash ISA allowances. Savers can currently deposit up to £20,000 across eligible ISAs during the tax year.
From April 2027, the Cash ISA allowance will fall to £12,000 for people under 65. Those aged 65 and over will retain the £20,000 Cash ISA limit, while the overall allowance for ISAs will remain £20,000. The different rates, access restrictions and deposit requirements leave savers with several options when considering where to hold their money.
