Society only one to beat inflation rate

The company surveyed 804 savings accounts across the UK and found that only Skipton’s seven-year fixed rate bond beats inflation and basic rate tax with its rate of 3.5 per cent.

The mutual, celebrating its 160th anniversary this year, said that due to demand – the original tranche was filled within weeks – the account has been extended until the end of August.

Kris Brewster, head of products at the member-owned institution, said: “We knew when we launched this landmark account that it would give savers across the region something they have been in need of for a long time – certainty.

“It promises them a decent return for seven years. And now we’ve found out that out of all the savings accounts available across the UK, ours is the only one that beats the cost of living.”

“Last week’s announcement by Bank of England Governor Mark Carney means less uncertainty for the financial markets and economy, and hard-hit borrowers.

“However, the downside of this is local savers now know their returns are likely to remain unusually low for longer.”