Skipton Building Society has launched a 5-year fixed-rate cash Isa paying 5% AER. The 5-year bond comfortably beats all similar fixed-term cash Isas, with the next best from Northern Rock paying 4.3% AER.
The Skipton BS account is available online only and can be opened with £500 or more. Payments into the account can be made by cash in branch, debit card, cheque, transfer from another Skipton Cash ISA or by transfer from another bank or building society.
Transfers in from other cash Isas are allowed
Transfers in from other cash ISAs are allowed. As with all Isa transfers, it is important to allow the old and new banks to make the transfer, as transferring the money yourself could mean you will lose the tax-free benefits of the Isa wrapper.
You can only hold one cash Isa in each tax year. If you already have a cash Isa for the 2010/11 tax year, you will need to transfer the whole balance into the new Isa if you want to open a Skipton fixed-term Isa before 6 April. Cash Isas from previous tax years can be transferred in part or whole.
Penalties for early closure of the Skipton BS cash Isa
As this Skipton cash Isa is a fixed-term account, there are penalties if you need to access your money earlier. Full balance withdrawals, and subsequent closure of your account, are subject to the loss of 240 days’ interest. Partial withdrawals and transfers out are not allowed.
Which? Savings Booster and Best Rate cash Isa tables
Last November, Which? revealed that British savers are missing out on £12 billion a year because banks kept us in the dark about poor interest rates. To help savers and give them a quick and easy way to find out what interest their account is paying, Which? has created a free Savings Rate Booster. This unique tool covers the whole savings and cash Isa market and allows you to find out what interest your existing account is paying, compare it with the best on the market and start moving your money.
To find out how much extra interest you could be earning on your cash Isa savings, try out the Which? Savings Rate Booster now.
To go straight to the cash Isas paying the most interest, read our cash Isa reviews.
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