Yorkshire Building Society offers ‘highly competitive’ 5% interest on savings account
Cost of living: Why Bank of England has increased interest rates
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As the cost of living crisis continues and energy bills soar, any extra cash could be vital for families feeling the squeeze. With inflation predicted to reach levels of 11 percent by the end of the year, savers will be wondering how to make their money in the bank.
YBS has launched their Loyalty Regular eSaver offering five percent AER.
Britons can pay £500 per month into the account.
To be eligible to open a Loyalty Regular eSaver, people must have had an open account (Savings or Mortgage) with YBS as either Main Holder, Other holder or Trustee for at least 12 consecutive months prior to applying and already be registered for online access.
Individuals can only hold one Loyalty Regular eSaver or Loyalty Regular Saver Issue 2 account in their name.
The account allows money to be withdrawn once a year without penalty, or on closing the account.
The Loyalty Regular Saver can be opened in branches and agencies as well as online for members who are already registered.
Hayley Tepliakov, senior savings proposition manager at Yorkshire Building Society, said: “Our founding purpose as a building society is to help people build financial resilience and get the best value on their savings.
“We’re committed to exploring ways that can help our members reach their financial goals or save for the future.
“Regular savings accounts are one way we can encourage our members to establish healthy savings habits.
“We’re really proud that this new account, which comes with a highly competitive interest rate and a generous monthly deposit limit is another example of how we reward the loyalty of our valued savers.
“Previous issues of this account have proved popular with savers and we’re sure this latest edition will be equally as well received.”
£500 per month saved at five percent gross AER would lead to a balance of £6161.92 at the end of 12 months.
Interest is paid into the Loyalty Regular eSaver on the anniversary of the account opening.
For example, if someone opened their account on 14th August, interest would be paid on 13th August the following year.
After 12 months, the account will mature into an off-sale maturity account, a Six Access Saver, which currently pays 1.15 percent.
The Bank of England has raised interest rates to 1.75 percent.
This could be good news for savers as it may prompt more banks to increase the interest rate given on savings accounts as well.
Currently inflation sits at 9.4 percent, which is no match for the base rate, but any extra cash could be vital for families on low incomes.
The interest rate has risen from 1.25 percent to 1.75 percent , its highest level since December 2008.
The Bank hopes to slow the rate at which prices are increasing, however has warned that inflation could pass 11 percent later this year.
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