Interest rates: Rocketing peaks demonstrated in graphic
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The Double Access Saver account from Skipton Building Society was highlighted as the Money Savings Expert website’s top easy-access savings accounts on the market at the moment. MoneyFacts.co.uk also gave the account their approval by giving it the top place on their “best” easy-access list. The experts at Moneyfacts also noted that the new account was launched with a ‘competitive’ interest rate.
This account is open to UK residents aged 16 or over and can be opened in a variety of ways either online, in selected branches or by phone.
Once opened, it can then be managed in the same ways.
However, it does need to be opened with a £10,000 deposit and this balance has to be maintained throughout.
This is because £10,000 is the “minimum operating balance”.
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Further additions can be made to the account throughout its lifespan with the maximum amount it can hold being £1million.
Skipton Building Society confirmed that joint accounts are allowed but can’t be opened through the Skipton banking app.
If someone deposits £10,000 into the account, after twelve months at the current interest rate, they could grow their pot by £255.
The interest is paid annually on the anniversary of the account and no monthly interest options are available.
The building society does note however, this would only be achievable if the account keeps the interest rate for the entire year.
As the account is variable, the interest rate can go up as well as down.
Skipton Building Society did note that if interest rates reduce then people will be informed in advance.
With the Double Access Saver account, people are allowed to make two withdrawals over the course of a year from the account opening.
If someone needs to make more than two withdrawals within the same year, they will have to close the account to do so.
MoneySavingExpert.com noted that this rule did “stretch the limits of the term easy access” in its analysis.
However, the building society reiterates that there are no penalty charges for making withdrawals and it does not need to be notified for withdrawals.
People can withdraw the money online, through their local branch, by post and over the phone.
Rachel Springall, finance expert at Moneyfacts.co.uk said: “The easy access market is seeing a spate of rate competition, so savers who don’t keep abreast of the top rate changes could miss out on a lucrative offer.
“Skipton Building Society now pay 2.55 percent gross on its Double Access Saver, which is a market-leading rate for new customers in the easy access arena.
“It is worth keeping in mind that savers will need to plan their withdrawals and deposit carefully, as it allows up to two withdrawals per year and requires a minimum operating balance of £10,000.
“As an alternative, those savers with smaller balances can find a rate of 2.50 percent from Ford Money on its Flexible Saver, where they can invest from £1 and make unlimited withdrawals.”
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