Skipton Guernsey Increases Interest Rates

by Carla Johnson, Investors Offshore, London

13 February 2007

Skipton Guernsey Limited has responded to the recent rise in the UK base rate with a 0.25% increase in interest rates across the range of its investment products, effective from 1 February 2007.

New rates are up to 5.50% gross pa/AER on Skipton's Sterling Access Plus account, 5.00% gross pa/AER on its Sterling Access account, 5.25% gross pa/AER on its Sterling Thirty and 5.50% gross pa/AER on its Sterling Sixty.

Ken Jones, Manager – Investments, SGL comments, “As the subsidiary of a building society, customer care and service are core values for us. These values, combined with our ability to react quickly to base rate changes and market conditions, have meant that we have been able to pass on the full benefit of the recent base rate rise to our customers.”

Sterling Access provides easy access to funds with interest paid annually on 31 January or 30 April. The minimum opening balance is GBP10,000.

Sterling Access Plus allows four free easy access withdrawals per calendar year, for example 14 October to 13 October, with subsequent withdrawals resulting in an administration charge of GBP25. Interest is paid annually on 14 October and the minimum opening balance is GBP25,000.

Sterling Thirty is a 30 day notice account, with the option to have easy access to funds, although 30 days’ interest is lost on sums taken out. Interest is paid annually on 18 June and the minimum opening balance is GBP10,000.

Sterling Sixty is a 60 day notice account, with the option to have easy access to funds, although 60 days’ interest is lost on sums taken out. Interest is paid annually on 14 October and the minimum opening balance is £25,000.

Skipton Guernsey Limited (SGL) is a wholly owned subsidiary of Skipton Building Society. Deposits made with SGL are not covered by the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. Skipton Building Society, established since 1853, has given an undertaking agreeing to discharge the liabilities of SGL in so far as SGL is unable to discharge them out of its own assets and whilst SGL remains a subsidiary of Skipton Building Society. SGL is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994, as amended and conducts business only in Guernsey; it is not authorised to accept deposits elsewhere.

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