The interest rate is one of the most attractive savings rates currently on the market – but not everyone can apply.
The Online Existing Member Regular Saver rate is only available to existing Skipton Building Society customers and is not a sweetening incentive for new customers to sign up.
To qualify, customers must have opened an account with the building society before August 16 2021.
It doesn’t matter how much they can afford to save but the maximum amount they can accrue interest on is £250 a month.
The attractive savings rate is offered at a fixed term of 12 months, so saving £250 every month without fail will result in a balance of £3,056 when the year is up.
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Rachel Springall, Finance Expert at Moneyfacts, said: “The growth in product choice for savers has reached a milestone, as the market’s steady recovery has led to volumes reaching the highest point not seen since before the UK lockdown and Bank of England base rate cuts in March 2020.”
Yesterday the Office for National Statistics (ONS) reported that the Consumer Prices Index (CPI) inflation fell to 3.1 percent in September from 3.2 percent in August.
Although it’s a step in the right direction, economists fear that this slight dip in inflation will do nothing to cheer up savers who are spending more because of the rising cost of living.
However, Skipton Building Society’s Online Existing Member Regular Saver could help savers get that little bit more interest on their money.
If people can afford to save, experts say it’s a good idea to have between three and six month’s worth of expenses tucked away in an emergency fund first.
This will help cover bills and living expenses if something unexpected happens that prevents them from working.
Once this is covered, it’s then a good idea to have a savings account with a decent interest rate.
Alternatively, they could also think about investing their cash.
Who would benefit from an Existing Member Regular Saver account?
Existing customers with Skipton Building Society would benefit from this account if they joined on or before August 16, 2021.
So too would those who would like to save up to £250 per calendar month to build up a lump sum.
Finally, the building society states this account will be suitable for those who do not think they will need to withdraw money from the account unless it is an emergency.