Skipton Building Society launches savings account with 'competitive' rate before Bank of England decision

The account is accessible to both existing members and those new to the building society.

Savers can deposit and withdraw funds at any time without facing penalties, making it suitable for those who want easy access to their money while still earning above-average returns.

Customers can save anywhere from £1 up to £100,000, with interest credited annually.

The account can be opened through several channels, including online, the mobile app, in branch, or over the telephone.

Alex Sitaras, the head of Savings & Partnership Products at Skipton Building Society, commented: "We're excited to introduce Bonus Saver, offering a competitive four per cent rate and the flexibility customers want.

"At Skipton, we're committed to helping people make their money work harder by providing accessible, good-value savings options, whether they're joining us for the first time or have been members for years.

"The broader savings market remains relatively stable, with the Moneyfacts Average Savings Rate sitting at 3.39 per cent following a marginal 0.01 per cent decline over the past week.

Caitlyn Eastell, spokesperson at Moneyfactscompare: "With base rate fast approaching, it may be the case that providers are holding back until a cut is announced. It is crucial that savers act quickly and grab the most attractive deals now because hesitating could cause them to miss out in real terms.

"Activity in the fixed bond sector has been more dynamic, with Kent Reliance raising rates across several products to claim the top spot in the three-year fixed market."

For those seeking tax-efficient options, Skipton also provides a four per cent annual allowance ISA for savers who have not yet utilised their 2025/26 allowance.

Elsewhere in the market, Teachers Building Society currently holds the leading position for variable cash ISAs, offering 4.30 per cent which beats inflation by 0.70 per cent.

Savers willing to accept stricter conditions may find regular saver accounts more rewarding.

Principality Building Society tops this category with a market-leading 7.50 per cent rate, though such products typically come with limitations that may not suit everyone's circumstances.

Savers have been forced to contend with hiked interest rates in recent years as a result of the Bank of England's base rate decisions.

The central bank's Monetary Policy Committee (MPC) has voted to raise the cost of borrowing to as high as 5.25 per cent amid the ongoing cost of living crisis.

This has been carried out in an effort to bring down the consumer price index (CPI) rate of inflation, which exceeded 11 per cent in 2022.

However, with the CPI rate easing closer to the Bank's desired two per cent target of inflation, the base rate has also been slashed to four per cent.

Analysts are pricing in a 0.25 per cent cut to the base rate at the MPC's next meeting on December 18, 2025.