A new 5 percent easy access savings account is being launched by Skipton Building Society Are you eligible?

A fixed rate bonus for a full year is included in the new 5% account offered by Skipton Building Society

Are you qualified?

The new easy access savings account offered by Skipton Building Society has a variable interest rate of 5% AER.

While not available to everyone, it is currently among the best easy access rates available. However, since the Bank of England is anticipated to lower interest rates this year, savings account offers will also decline, so if you can get it, now might be a good time to get the best rate.

In addition to the 2.8 percent variable, the Member Bonus Saver offers a fixed 2.2 percent bonus for the first 12 months. The account rewards devoted Skipton customers, as its name implies.

The maximum amount you can deposit into the account is £5,000, which means that if you paid the full amount, you might be able to earn £250 in interest annually.

As with any easy access account, taking money out has an impact on your total interest earnings, but savers can withdraw their money whenever they want without incurring penalties.

Even though the 12-month bonus rate is fixed, the account will pay at least 2.2 percent for the first 12 months because it is a variable rate account, which means the underlying interest rate may increase or decrease.

Who can open a 5 percent saver account with Skipton Building Society?

You must be a UK resident who is 16 years of age or older and have maintained a continuous membership with Skipton Building Society beginning on or before June 2, 2025, in order to be eligible for the Member Bonus Saver account.

You will be eligible if you did not already have a Member Bonus Saver and you had a savings account or mortgage with a balance of at least 1 with the Skipton Building Society on the specified date.

There are no joint accounts available, and each eligible member may only have one account.

You can open the account online, through the Skiptons app, in-person, or over the phone.

Each year, interest is paid on this account.

Alex Sitaras, who oversees savings and partnership products at Skipton, stated that the account "reflects our ongoing commitment to rewarding loyalty and helping our members make their money work harder" and "offers a highly competitive rate."

Moneyfactscompare . co . uk spokesperson Caitlyn Eastell told BFIA: "It's uncommon to find a fully flexible easy access account that pays 5% on deposits as small as 1.

For current clients, this might be a compelling choice to maximize their savings because inflation can quickly deplete savings accounts.

Even though the account has an "attractive" headline rate, Eastell advised savers to check the offer before the bonus expires after a year.

She went on to say, "Savers should consult a professional if they are unclear which account is best for them."

In comparison to other accounts, how does Skiptons' 5 percent Member Bonus Saver stack up?

With an AER variable of 4.75%, Atom Bank's Instant Saver Reward is currently the greatest easy-access savings account available to all.

The Instant Saver Reward is an easy access savings account that offers a "reward" rate for savers who refrain from taking money out. Withdrawals will cause the rate to momentarily fall to 2 percent of the monthly AER variable.

Currently, Chase is providing new customers with a six-month variable interest rate of 45% AER. Among other things, there is a six-month fixed 1 point 75 percent AER bonus rate.

For its easy access saver account, Chase introduced a new 1 point 8 percent fixed bonus offer in April for over two million current customers. For six months, the increased rate was set.

Since Chase's standard saver variable rate at the time was 3 percent AER variable, this meant that customers could earn 4 points 8 percent AER over the period.

The variable rate on the Chase Saver, however, tracks 0.5 percent lower than the base rate. Following the Bank of England's May interest rate cut to 4 percent, the accounts rate was lowered to 2 percent AER variable.

This indicates that the boosted account's overall interest rate has decreased to 4.55 percent AER.

First Direct's Bonus Savings Account allows current account holders to earn up to 4 percent AER.

For each month that they do not withdraw, they are eligible to receive the enhanced rate of 4 percent AER on balances up to £50,000. In any given month when they make a withdrawal, this falls to 1 point 35 percent AER.

Beginning July 21, 2025, the interest rate with bonus will be lowered to 3 points 75 percent AER on balances up to £50,000. The bonus-free interest rate will be lowered simultaneously to 1 point 3 percent AER.

It's crucial to consider whether interest taxes may be imposed when selecting a residence for your savings, especially in light of the current income tax band freeze. In a different post, we examine how ISAs differ from conventional savings accounts.