Act now to get 5% on your savings

Skipton Building Society is to withdraw its market-leading regular savings account, which pays 5% irrespective of whether you already have another account with the society.

The account will be pulled at the close of play on Friday 10 December.

First Direct and HSBC currently top the regular saver best buy tables with accounts paying 8% over the year but are confined to those customers who already have current accounts with the banks (in HSBC's case, fee-paying accounts).

Skipton's year-long deal pays 5% on monthly deposits from £10 to £500 and can be opened in branches or over the phone. A maximum of £6,000 can be invested and savers can make as many deposits as they like, so long as they stay within the minimum/maximum monthly restrictions.

Like most regular saver accounts, no withdrawals can be made over the 12-month period after which the savings balance is transferred into an easy access account.

If savers were to pay in the maximum £500 a month they would earn £165 gross in interest and have a final balance of £6,165.

The deal will be replaced by the Regular Saver Issue 2 which will pay 3.25%. Although the interest rate isn’t quite so attractive it is fixed for a year and there will be no minimum or maximum contributions.

By comparison, Norwich & Peterborough Building Society and Principality Building Society also offer regular saver accounts that aren't restricted to existing customers, both currently pay a fixed rate of 4% over the year.



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sounds good

BUT again, it isn't 5% on the whole amount saved, only the first month's instalment. Why do you/they not state the APR?

I would like to see not just the interest rate advertised but the amount of money after the period. I have in the past been told an amount I would get only to get something different because if the way the interest was calculated. As a independent mag, you would be a reliable source and this method is easier to compare.

Dear Rachel,

You state that "Skipton's year-long deal pays 5% on monthly deposits ....."; nowhere in your article, did I see the word "variable" nor the phrase "currently 5%".
This implies that the rate is fixed which clearly it is not!
The Skipton Building Society (SBS) internet site states:
" earning interest at an attractive variable rate, currently 5.00% gross pa/AER variable."
By the way, the SBS site also suggests that the account may be opened "through Skipton Direct" but I have not been able to find such an entity, any ideas please?

Yours sincerely,

Robert Pond

The rate given is the current APR.

Suppose you invest £500 a month - the first £500 is invested for 12 months, the second for 11 months and so on until the final instalment which is invested for 1 month. So on average you invest £500 for 6.5 months. (average of 1 to 12) The trick if you have a lump sum is to invest it in the best instant access account and take out the £500 a month to put into this one.