Skipton has launched a new three-year Member Income Bond to help boost retirement income.
The three-year Member Income Bond pays a rate of 4.50 per cent and savers can benefit from today.
To be eligible for the Member Income Bond, Skipton members need to have held a savings account or mortgage with the Society continuously since June 12, 2022.
Eligible members will receive a regular, fixed monthly increase to their income – straight into their nominated bank account.
To open the account, savers need a minimum of £10,000. The account takes up to £25,000.
Those who deposit the minimum £10,000 can earn a monthly income of £37.50.
Those who deposit the maximum £25,000 can earn a monthly income of £93.75
PAThose who deposit £15,000 can earn a monthly income of £56.25.
Meanwhile a deposit £20,000 can earn a monthly income of £75.00
Those who deposit the maximum £25,000 can earn a monthly income of £93.75.
It should be noted that there are no withdrawals or early closure allowed with this account.
The Society has also launched today a new one-year bond available to all of its 1.2 million members.
All Skipton customers can now benefit from a fixed rate of return of five per cent for the next 12 months.
This will be an attractive rate for many savers as it beats inflation so people are making the most of out their money.
The bond is available to anyone aged 16 or over who held a savings or mortgage account with the Society on June 12, 2024.The interest rate on the account is is accrued daily and will be paid upon the product maturing.
There are no withdrawals or early closure permitted for this account.
To open this account, savers will need a minimum balance £500 and the maximum balance is £15,000.
For both accounts, additional deposits are allowed until August 7, up to the maximum balance.
Alex Sitaras, head of savings & partnership products at Skipton Building Society, said: “We want being a member at Skipton to really mean something, whether you’re using one of our savings accounts to get set for the future, or you’ve used one of our mortgages to buy your home.
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“By launching our three-year fixed rate Member Income Bond today, we’re supporting those members who might be looking for a way to boost their income in retirement by having a set monthly return from their savings.
“Members who save the maximum £25,000 into this bond from day one will benefit from over £90 income each month or over £1000 per year. Giving them more money to do the things they like in retirement, or to help with monthly expenses such as food or petrol.
“It’s no secret that our mission is to help Skipton members to get their money working as hard as it can for them. Which is why our new Member Income Bond is a natural choice for any Skipton member looking for a great way boost their savings and even to help supplement their pension.”
An earlier version of this article referred to Skipton's bond as being exclusive to members. It is available to everyone, not just members. We are happy to correct the record.