Skipton Building Society has unveiled a new fixed-rate Cash ISA with an 18-month term, paying 4.55 per cent AER.
The product, which became available today, ranks among the most competitive offerings currently on the market for savers seeking tax-free returns.
Both existing and new customers can access the account, which requires a minimum deposit of £500 and permits balances up to £1 million.
The building society stated the launch forms part of its ongoing efforts to bolster its savings range and assist customers in maximising their tax-free allowances.
Savers can open the account through multiple channels, including the Skipton website, mobile app, telephone banking or by visiting a branch in person.
The fixed-rate product allows customers to deposit their full £20,000 annual ISA allowance and transfer existing ISA savings from previous tax years.
Withdrawals are not permitted during the 18-month term, giving savers certainty over their returns but limiting flexibility.
ISA products remain central to UK household savings strategies | GETTY
Those who need to close the account early will face a penalty equivalent to 90 days’ interest.
The product sits within Skipton’s broader ISA range, which the society has recently streamlined to offer clearer options for different saving preferences.
Customers choosing the fixed-rate route benefit from a guaranteed return over the term, while those requiring more flexibility can opt for the building society’s easy-access alternative.
The account can be managed through whichever channel suits the customer best, whether that is digital access via the website and app, speaking to staff over the telephone, or face-to-face assistance at one of Skipton’s branches across the country.
The ISA allowance resets each year on April 6, when a new tax year begins | GETTY
Alongside the fixed-rate launch, Skipton has consolidated its two easy-access Cash ISA products into a single streamlined account paying 4.07 per cent AER on a variable basis.
This simplified offering permits up to two penalty-free withdrawals annually and allows savers to choose between monthly or annual interest payments.
Alex Sitaras, Head of Savings & Partnership Products at Skipton Building Society, said: “With ISA allowances under increased scrutiny and savers keen to act before any future changes, many people are looking for straightforward ways to secure strong, tax-free returns.”
Skipton Building Society has introduced a new fixed-rate savings option
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GETTYHe added: “In the current climate, where many households are under pressure and every pound matters, we believe fairness means helping your money work harder by offering competitive rates and clear, straightforward savings options that support people when they need it most.”
Members also gain access to free money guidance and regulated financial advice through the building society.