Skipton's 5% ISA to be withdrawn

5 percent

The Skipton Building Society will withdraw its 5% fixed rate ISA at the end of today.

Launched on 2 March, the ISA spent two weeks at the top of the best buy tables.

Eager savers have until 5pm to snap up the deal. It is fixed at 5% for five years and is available with a minimum investment of £500.

The ISA also accepts transfers from previous years' ISAs and savers can opt to receive interest monthly (instead of yearly) for a slightly lower rate of 4.89%.

Skipton says they will replace the ISA with another deal later this week but no details have yet been confirmed.

Market leader

Whichever interest option savers plump for, the deal is well ahead of the competition. The next best long-term fixed ISAs are 4.3% for five years from Northern Rock, or 4.3% for four years from Halifax and Royal Bank of Scotland.

With the base rate still languishing at 0.5%, any account that pays 5% is a tempting option, however the Skipton deal won't be suited to everyone. Savers need to be sure they can afford to tie their money up for the full five years.

Should you need to get your hands on the money before that time you would suffer a penalty of 240 days interest, have to withdraw the total balance and close the account.

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Your Comments

Do not trust banks,they are not going to the wall,ripping off thousands like me who helped to protect this country in the 1940s.I am closing my accounts and spending!! A pity everyone does not do the same!!!

Please let me know where there is a SKIPTON branch near\Sunderland
J V Hudson

 Hi James Hudson

I've had a look at the Skipton's website and it looks like your nearest branch is in Newcastle. However it does look like you can run the ISA by post. The customer service number is 0845 603 4735 if you need more info. Hope that helps.

Arthur Hanson has a point. Locking monet in for 5 years as you get older doesn't make sense. Whats more they sieze it if you go into care.
If, as predicted, we're facing hyperinflation or global meltdown why not buy those small investment bars of Gold or Silver, which holds its value over time. I got mine by post from bullion dealers Bairds of London and the price increase of both has beaten all my investments over the year.
You can hand them to your children if you go into care, or sell them if times get hard.