The higher interest rate is offered as the account needs to be opened with a £10,000 initial deposit, however, the 2.75 percent rate is then fixed for the entire term. Moneyfacts.com places the account in first place on its Best 18 Month Year Fixed Rate ISAs. Skipton Building Society says that a saver who deposits £10,000 can earn £368 in interest over the term of the account.
The interest on the account is earned daily and is paid on the anniversary of the account opening.
Skipton Building Society states that savers only have until 22 September to grab this offer.
Until this date, people will deposit up to their total ISA allowance, which is £20,000 for the 2022/23 tax year.
They will also be able to request ISA transfers either from existing ISAs with Skipton or other ISA providers.
After this, the account will be closed to further deposits and additional requests for ISA transfers in.
Skipton states that Britons are able to hold up to £1million in their 16 month ISA.
This account is available to UK residents aged 16 or over and can only be opened and managed online.
Skipton doesn’t offer joint accounts with their 16-month ISA.
The one-year fixed rate Cash ISA currently offers an interest rate of 1.6 percent for annual interest and 1.59 percent for monthly.
Moneyfacts website highlights this account as a “market-leading” for one year fixed cash ISAs.
Rachel Springall, finance expert at Moneyfacts said: “Savers looking to utilise their ISA allowance may find the Cash eISA Saver from Skipton Building Society an attractive choice as it pays a market-leading rate of 1.60 percent and offers flexibility.
“During times of uncertainty, having quick access to savings pots is wise, and with an easy access ISA, savers will also benefit from their tax-free ISA allowance.
“Those savers who are comparing easy access accounts outside of an ISA wrapper will find Al Rayan Bank paying 1.90 percent as an expected profit rate on its Everyday Saver and Shawbrook Bank paying 1.86 percent gross interest on its Easy Access account.”