Skipton BS - 1Year FIXED Bond; reducing interest rates?

Westin

In June 2025 I opened a 1 Year Fixed Bond [1Y Fixed Bond Issue 2] at Skipton BS and deposited £5000. The interest rate was 4.75%.

This morning I received an email saying that following the BoE base rate reduction, the interest on my account would be dropping on 26 January to 4.40%.

I thought a FIXED bond had the interest rate fixed at that issue rate.  What am I missing?

flaneurs_lobster

That Issue number you quote looks wrong, they are up in the 290's now.

Sounds wrong, 1 year fixed rate means 1 year fixed rate.

Do you have any other products with Skipton that may have a pending rate decrease?

Have you rung them?

ColdIron

Skipton (and others) fixed rate accounts are, well, fixed. Does it mention your account specifically? Do you have any other accounts with them?

Rollinghome

Westin said:

In June 2025 I opened a 1 Year Fixed Bond [1Y Fixed Bond Issue 2] at Skipton BS and deposited £5000. The interest rate was 4.75%.

This morning I received an email saying that following the BoE base rate reduction, the interest on my account would be dropping on 26 January to 4.40%.

I thought a FIXED bond had the interest rate fixed at that issue rate.  What am I missing?

Would be a very strange fixed rate bond if the interest wasn't fixed.  I see that they currently offer a "1 Year Fixed Rate Bond (Issue 294)" so it would seem strange if they were offering an Issue 2 just a few months ago.

I hope you downloaded the paperwork, including the summary, as that will tell you what you have and the terms.  Otherwise you may need to call them.

Barkin

flaneurs_lobster said:

That Issue number you quote looks wrong, they are up in the 290's now.

Do you have any other products with Skipton that may have a pending rate decrease?

My thoughts too.

Those numbers look correct for the Member Bonus Saver issue 2...

The rate reduction emails give the last 3 digits of the account/s affected.

BooJewels

I had an email from them late last night that an Easy Access account I have with a quid or so in, is reducing rate (from 2.5% to 2.15%) from 26th January - so they're certainly reducing rates at the moment and advising customers, but as has already been said, their fixed accounts don't change, I've had several and have a fixed rate ISA with them now and don't expect that to change during the 3 year term.

Kim_13

Barkin said:

flaneurs_lobster said:

That Issue number you quote looks wrong, they are up in the 290's now.

Do you have any other products with Skipton that may have a pending rate decrease?

My thoughts too.

Those numbers look correct for the Member Bonus Saver issue 2...

The rate reduction emails give the last 3 digits of the account/s affected.

They are, with £5,000 being the maximum balance on that account. In June 2025 the interest rate was 5% and it has always been variable rate - but with that being the case, you are able to move your money elsewhere at any time.

eskbanker

The Bank of England reduced the bank base rate to 3.75% on 18 December 2025.

How does the decision affect my savings?

Fixed rate accounts

Fixed rate savings accounts are unaffected by a change in base rate, and your interest rate will remain the same until the end of the fixed term.

Base Rate Tracker

Savings accounts with rates directly linked to the Bank of England Base Rate will be decreased, in line with the terms and conditions.

Changes to Tracker accounts [PDF]

Other variable rate accounts

On Monday 26 January 2026 we will be reducing most of our variable savings rates, with no variable rate savings account paying less than 2.05% AER.

Changes to variable products [PDF]

https://www.skipton.co.uk/help-and-support/base-rate-change

SonOfPearl

It looks like you have the Skipton Member Bonus Saver Issue 2, which I also have. It's an easy access account with a variable rate (which includes an extra bonus of 2.2% which lasts for 1 year only). The maximum balance allowed is £5k. If you aren't happy with the new rate you can simply withdraw your money.