A UK building society has launched a new easy-access Cash ISA savings account with a "good" rate. Skipton Building Society unveiled the Bonus Saver for both new and existing customers, offering a variable rate of 3.92%, including for fixed 1.87% bonus for the first 12 months.
Easy access Cash ISAs are savings accounts that offer tax-free benefits, as unlike a regular savings account you don't pay tax on the interest you build up. They also typically come with few restrictions on withdrawals. And while this flexibility makes it useful for depositing cash for emergencies, it does have disadvantages compared to normal savings accounts, such as generally lower interest rates.
According to Skipton Building Society, key features of their Cash ISA account include:
- A 3.92% variable interest rate (includes a 1.87% bonus for 12 months)
- Flexible Cash ISA access, with customers able to deposit or withdraw anytime without penalties
- Save from £1 up to £1million
- Interest is paid annually
- Accounts can be opened online, via their app, in branch, or over the phone
They also have a non-Cash ISA Bonus Saver account offering comparable rates.
Alex Sitaras, Head of Savings & Partnership Products at Skipton Building Society said: "With a good 3.92% rate and the flexibility customers value, our new Bonus Saver is designed to help people get more from their money.
"It's part of our commitment at Skipton to help people make their money work harder, with straightforward, goodvalue savings options for both new and longstanding members."
Skipton's offering is just one of many easy-access Cash ISA products in the UK savings market.
Moneyfactscompare.co.uk provides a regularly-updated ranking of the top tax-free rates offered by various banks and building societies based on the Annual Equivalent Rate (AER) offered.
The AER is a standardised measurement used by financial services firms to show how much interest you could build up over a year.
Trading 212Cash ISA Promo Rate currently tops the list in terms of its tax-free rates, with an AER of 4.40% (including a bonus for 12 months added to their lower standard rate), as of 3.35p on Monday, February 2.
Next up is Moneybox's Moneybox Cash ISA, with an AER of 4.39% (also factoring in a bonus over 12 months).
Plum's Plum Cash ISA is currently third by this metric with a 4.36% AER (including bonus of 12 months too).
In all three cases, interest is paid monthly. However, it's important to remember that rates can vary, so it's best to check with the provider before signing up.
