Skipton Building Society has launched a new escalator bond, which can reward savers for their loyalty with rates that increase over time.
The Bonus Access Bond can track the Bank of England’s base rate and will offer a starting rate of 5.75% which will increase every six months to 7.25% in two years’ time, based on current rates. As an added bonus, savers can withdraw money from their investment at any time.
The new Bonus Access Bond can be opened with a minimum investment GBP500 and the maximum limit for investment is GBP100,000. Customers can pay through cheque or transfer to open the new account. It will allow customers to withdraw money at any time, without penalty. Withdrawn funds cannot subsequently be replaced. Any withdrawals in each six monthly period will exclude the customer from the bonus rate for that period.
Steve Aldous, general manager of Skipton Building Society, said: The Bonus Access Bond offers a cracking initial rate of 5.75% which, like most things, gets better with age. The rate increases every six months plus, unlike a standard bond, savers can access their money at any time. Therefore, they really stand to gain from this account as it is far more flexible than any fixed rate bond currently on the market.