Skipton Building Society has launched a new 18-month ISA offering savers an interest rate of 4.20 per cent.
The product is available to both new and existing customers from March 17, It can be opened in branch, online, via the Skipton app or by phone.
The launch comes as households look to make full use of their taxfree savings allowances.
A minimum deposit of £5,000 is required to open the account, while savers can invest up to £1million.
Partial withdrawals are not permitted during the 18-month term, but customers can deposit up to their full ISA allowance, which currently stands at £20,000 for the tax year.
ISA transfers are also accepted until the final paying in date. Savers can choose to receive interest either annually or monthly.
Alex Sitaras, head of savings and partnership products at Skipton Building Society, said: “With ISA allowances set to change in the coming years, many people are understandably looking for straightforward ways to make the most of the taxfree opportunities available today.”
He added: “At Skipton, fairness matters and that means ensuring everyone has the support they need to maximise their ISA allowances before the changes take effect.”
New account offers competitive returns
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Mr Sitaras said: “Whether that’s free Money Guidance or regulated financial advice, our experts are here to help people make confident decisions and get their money working harder.”
He added: “That’s why we’re delighted to launch an ISA offering that combines competitive rates with real flexibility.”
Mr Sitaras said: “With this breadth of support, we’re helping savers navigate the ISA changes and plan ahead with confidence, enabling people to protect more of their savings at a time when every pound of taxfree interest counts.”
The building society said the account is designed to provide a simple option for those seeking fixed returns over a set period.
ISA transfers are also accepted until the final paying in date
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Further details about the ISA are available through Skipton Building Society’s website, by phone or in branch.
From April 6, 2027, the annual Cash ISA contribution limit for those under 65 will be reduced to £12,000, while the overall £20,000 ISA allowance remains.
This creates a two-tier system requiring individuals to split the remaining £8,000 between other types, such as Stocks & Shares or Innovative Finance ISAs.
Individuals aged 65 and over are exempt from the cap and can continue to contribute the full £20,000 to a Cash ISA.