Skipton Member 1 Year Fixed Rate Bond 5%

RosieRooBear

Skipton have launched a members only 1 year fixed rate bond at 5%. Have to have been a member on or before 12/06/2024.

1 Year Fixed Rate Member Bond Issue 1

 

5.00%gross pa/AER fixed

 

• Save from £500 up to £15,000
• No withdrawals or early closure
• Exclusively for existing members who joined on or before 12/06/2024 and don't already have this product
• Pay in until 07/08/2024
• Transfers into a 1 year fixed rate bond at the end of the fixed term, unless you choose otherwise

https://www.skipton.co.uk/savings/fixed-rate-bonds

happybagger

You'd think they'd have at least one person working for them that could advise on what is out there in the market at a better rate (and doesn't even require you to be a "valued member") before launching the product

flaneurs_lobster

happybagger said:

You'd think they'd have at least one person working for them that could advise on what is out there in the market at a better rate (and doesn't even require you to be a "valued member") before launching the product

Pretty sure that the fourth-largest building society in the UK will have at least one person whose job it is to know what their opposition is placing into the marketplace.

happybagger

Makes you wonder. Clearly being an "existing member" is not valued too highly then.

artyboy

Let's not forget that until their latest members bond came along, Nationwide were the masters at offering p@ss poor rates dressed up as special 'loyalty' bonds...

Gers

happybagger said:

You'd think they'd have at least one person working for them that could advise on what is out there in the market at a better rate (and doesn't even require you to be a "valued member") before launching the product

That's a bit mealy-mouthed! Interest rates are dropping every day so a fixed rate account is always welcome. You chose your floor and/ or ceiling.

happybagger

I'm not sure what 'mealy-mouthed' means, sorry, I just can't believe they have determined something as a "member offer" which doesn't come close to a the vast number of one-year bonds available to all in the general market today.

Normally their member offers are ok, such as the reg savers, but can you tell me why you'd find this "member offer" attractive, compared to the rest of the market (currently offering 5.21% on a 1 year fix)?

Barkin

It does have a longer funding window than most, which some might find attractive. 

Otherwise /shrug/ go elsewhere - no big deal. 

friolento

Thank you, Skipton.

Sadly - for you - my money is earning better interest elsewhere, even in easy access accounts.

premierfella

Barkin said:

It does have a longer funding window than most, which some might find attractive. 

Otherwise /shrug/ go elsewhere - no big deal. 

Interesting - that is actually the main (only) selling point of this bond, and something I skipped straight past when first looking at it.

Undoubtedly someone with £500+ lump sum today one-off for this should be looking elsewhere.

But this 5% fixed is probably going to look much more competitive getting closer to August. If it's still around in a few weeks time I may actually take Skipton up on it for some money currently locked in soon-to-mature savings accounts (but opening with the minimum £500 balance).

TheWoodler

Skipton have form for slightly unusual products - they may not always be table-topping rates, but there’s usually a flavour of something favourable about their offerings. 

The general trend for rates is downwards now. I’m starting to see communications involving variable rate reductions or communications about such communications (testing their legibility and comprehension by the customer), which shows which way the wind is blowing. Chase’s EA is 5.1% but only until January 25 - it does come with other advantages, eg for drip-feeding. 

It’s easy to criticise rates, but customers have other criteria too. The lure of a biggish name is potentially one; branch presence; customer service; good online service; accessibility; corporate social responsibility; green banking etc; or spreading their money between institutions, are all things customers can look for, as well as rates, and it’s certainly more competitive than *some* accounts that customers might hold due to inertia. 

Not everyone is an MSE, or has a lot to save, and if this galvanises an inert customer to gain more bang for their buck, relatively speaking, or to look beyond their High Street bank, then it’s not a bad thing and could end up being competitive over the course of the year. It might not be for *you*, but it might be attractive to *some* customers for more than one reason. 

I find Skipton one of the most accessibly-minded BS, so for me that’s a good trade-off.