The financial institution’s new Loyalty Regular Saver will offer customers a variable interest rate of five percent. According to the building society, this latest product is “highly competitive” and will offer people a favourable return on their savings. Customers will be able to deposit up to £500 a month into Yorkshire Building Society’s new savings account.
The new savings account gives customers the opportunity to withdraw money on one occasion throughout the year without fear of penalty.
Existing customers, with a continuous membership for at least 12 months, will also be able to withdraw their cash from the Loyalty Regular Saver if they choose to close the account.
This latest offering from Yorkshire Building Society is available to those who either save or have a mortgage with the financial institution.
Eligible members can open the new Loyalty Regular Saver in the building society’s branches across the country.
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Hayley Tepliakov, the senior savings proposition manager at Yorkshire Building Society, emphasised why it is important banks and building societies continue to offer “highly competitive” rates for their customers.
Ms Tepliakov explained: “Our founding purpose as a building society is to help people build financial resilience and get the best value on their savings so 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.
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“Previous issues of this account have proved popular with savers and we’re sure this latest edition will be equally as well received.”
This latest intervention from Yorkshire Building Society comes amid a flurry of interest rate hikes as banks look to mitigate the damage of inflation on savings.
Adrian Lowery, a financial analyst at Evelyn Partners, welcomed the recent rate increases which are happening “albeit from a very low level”.
Mr Lowery said: “The top easy access rate is now about 1.5 percent and you can get about 2.7 percent on a one-year fix.
“These rates are being swamped by current levels of inflation but everyone needs to hold some savings in cash, and it’s better that it’s earning a visible amount of interest rather than the near-zero levels that had become the norm until recently.
“Savers might want to think before fixing their rate for more than a year at the moment, however, as the UK’s benchmark interest rate will rise further this year, and savings providers should hopefully follow suit.”
Recently, the Bank of England warned that interest rates could reach as high as two percent in a bid to combat inflation, which is expected to hit ten percent later in the year.
Currently, the country’s base rate is at 1.25 percent as the UK’s central bank continues to hike borrowing rates in a bid to address the cost of living crisis.
This article previously said new customers could open the Loyalty Regular Saver account, however they must actually have been members for at least 12 months. We are happy to set the record straight.