Savers are being offered a fresh chance to lock in a competitive tax-free return.
Skipton Building Society has unveiled a new 18-month Cash ISA paying 4.56%. The deal, launched this week, is being billed as the top rate currently available for an ISA over that term – giving households certainty at a time when interest rates remain uncertain. The account allows savers to shield up to £20,000 from tax in the current year, with the fixed rate lasting the full 18-month period.
Skipton said the product is open to both new and existing customers and can be accessed online, via its app, in branch or by phone.
However, the headline rate comes with strings attached. Withdrawals are not allowed during the term, and anyone closing the account early faces a penalty equivalent to 90 days’ interest.
The minimum investment is £500, while balances can go up to £1million.
Savers can also transfer in ISA funds from previous tax years.
Alex Sitaras, head of savings and partnership products at Skipton, said: “We’ve refreshed our 18-month fixed ISA, ensuring it remains firmly market-leading and available to both new and existing customers.
“It’s a small change on paper, but a clear signal of our commitment to fairness and helping savers lock in strong, tax-free returns with confidence.
“In the current climate, where many households are under pressure and every pound matters, this means offering consistently competitive rates alongside clear, straightforward savings options.”
The launch comes amid intense competition among banks and building societies to attract deposits, as millions of savers hunt for better returns after years of lacklustre rates.
But experts warn that while fixed ISAs can offer certainty, they may leave savers locked in if rates rise further making flexibility just as important as headline returns.
