Capital One will transfer all savings accounts to Skipton on 27 July.

Credit card company and online bank, Capital One, has announced it is to stop offering savings accounts in the UK and will transfer existing accounts to Skipton Building Society.

Once the transfer has received the approval of the Financial Services Authority (FSA) and the High Court, Capital One’s existing savings account holders will have their funds automatically transferred to Skipton on 27 July.

The US-owned bank has stated that the transfer will not affect the terms and conditions of the account and will continue to operate as normal.

The transferred funds will trade under the name Castle Money, a trading name of Skipton Building Society.

Capital One savings account holders will not be required to do anything during the transfer. All standing orders and direct debits will automatically be transferred to Skipton. Payments can still be made into the account and cash withdrawal will continue as normal.

Single savings in a UK financial institution are protected under the rules of the Financial Services Compensation Scheme for up to £50,000. People with savings of £50,000 in both Skipton and Capital One will be fully protected until 27 July.
 
Capital One downsized 750 staff at its Nottingham headquarters last year in an effort to cut costs.

The decision to sell the savings accounts will not affect any of Capital One’s other businesses, such as the credit card.