A building society has launched a new savings product aimed at customers seeking “competitive” returns. The account also offers flexibility with a strong interest rate.

Skipton Building Society has announced its Bonus Saver account, which offers customers a variable rate of 4%. This includes a fixed 1.7% bonus for the first 12 months. Both existing members and those new to Skipton Building Society are able to open the account.

Savers can deposit and withdraw funds at any time without being penalised. The account allows them to save anywhere from £1 to £100,000.

Alex Sitaras, head of savings and partnership products at Skipton Building Society, said: “We’re excited to introduce Bonus Saver, offering a competitive 4.00% 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.”

Skipton Building Society also provides a 4% annual allowance ISA for savers who have not yet utilised their 2025/26 allowance. This is perfect for those seeking tax-efficient savings options.

Teachers Building Society currently leads the market, offering 4.3% for variable cash ISAs. Meanwhile, Principality Building Society leads regular savings accounts with a 7.5% rate.

Due to the ongoing cost of living crisis, the central bank’s Monetary Policy Committee (MPC) has voted to raise the price of borrowing to 5.25% It comes after the consumer price index (CPI) hit over 11% in 2022.

Caitlyn Eastell, spokesperson at Moneyfactscompare, added: “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.”