Skipton Building Society launches three year income bond offering pensioners an extra £88 a month

The Bond allows pensioners to receive a regular, fixed monthly increase to their income - straight into their nominated bank account.

Customers who have been a Skipton member continuously since June 12, 2022 can get a higher rate version of this product of 4.50 per cent AER.

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 £35.41.

Those who deposit £15,000 can earn a monthly income of £53.12.

Meanwhile a deposit £20,000 can earn a monthly income of £70.83

Those who deposit the maximum £25,000 can earn a monthly income of £88.54.

It should be noted that there are no withdrawals or early closure allowed with this account.

Interest is paid monthly to a nominated bank account.

Any additional deposits will be allowed until August 28, up to the maximum balance to allow savers more time to get the most for their savings.

Alex Sitaras, head of savings & partnership products at Skipton Building Society, said: “By launching our three-year fixed rate income bond, we’re supporting those people looking for a way to boost their income in retirement by having a set monthly return from their savings.

“Customers who save the maximum £25,000 into this bond from day one will benefit from £88 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 Income Bond is a natural choice for anyone looking for a great way boost their savings and even to help supplement their pension.

"And anyone who has been a Skipton member continuously since June 12, 2022 can get a higher rate version of this product of 4.50 per cent AER.”

To open and manage this account, a valid email address must be provided, alongside details for one's nominated account and where they would like their interest to be paid.

This must be a UK bank or building society account in the person's name, it cannot be another Skipton account.

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Once the account is opened, savers have 14 days from when they open their account to notify the Building Society (in writing, in branch or by phone) if they wish to cancel their account.

After this, money can’t be withdrawn until the end of the fixed term.