Skipton Building Society is set to pay millions out interest over the next 12 months after more than 60,000 members opened a regular savings account with the mutual in the last three months.
The account – available to anyone who had a savings account or mortgage with the building society on or before May 31, 2023 – pays a market-leading 7.5 percent at maturity after 12 months, and allows monthly deposits of up to £250.
Launching just three months ago, more than 97 percent of opened Regular Saver accounts are funded with deposits.
That means that if those account holders continue to fund their account fully over the next 12 months, Skipton will reward members with more than £7million in interest.
Andrew Bottomley, CEO of money at Skipton Building Society, said: “In just three short months, it’s fantastic to see that tens of thousands of Skipton members have chosen to open the Regular Saver.
“It’s the perfect account for both aspiring and seasoned savers, giving them the chance to get their money working harder than it can anywhere else.”
Mr Bottomley added that the objective of the account presented Skipton with a another way to “give back value” to its members.
He said: “It’s about making membership mean more to our savers and borrowers, and with our Regular Saver account, we can reward our members for looking after their money. The millions we’ll return in interest to these savers is the realisation of that.”
Skipton’s Member Regular Saver (Issue Two) can be launched and managed online, over the phone, by post or in a branch by eligible members aged 16 or over.
Partial withdrawals are not allowed, however, people can close their account at any time and withdraw the full balance without penalty.
The account will mature after 12 months, meaning savers can invest a maximum of £3,000 across the year overall.
To provide an example of the interest a pot this size will amass, the estimated balance at the end of the fixed term would be £3,121 – based on monthly £250 deposits and no withdrawals.
The building society says it has been responding to recent Bank of England Base Rate rises by passing on an uplift to savers in more than three-quarters of instances over the last year.
Following the BoE’s recent move to take the Base Rate to 5.25 percent in August, Skipton announced it would pass on a rise to all variable savings accounts.
At present, the lowest variable rate savings account available at Skipton now pays 3.25 percent.
