Yorkshire Building Society offers a ‘very competitive’ interest rate of 5% on a savings account | Personal finance | Finance

As the cost of living crisis continues and energy bills soar, any extra cash could be lifesaving for families in need. With inflation expected to reach levels of 11% by the end of the year, savers will be wondering how to earn their money in the bank.

YBS has launched its Loyalty Regular eSaver offering five percent AER.

Britons can deposit £500 per month into the account.

To be eligible to open a Regular Loyalty eSaver, individuals must have had an open account (Savings or Mortgage) with YBS as the Primary Cardholder, Alternate Cardholder or Trustee for at least 12 consecutive months prior to applying and be already registered for the online access.

Individuals may only hold one Loyalty Regular eSaver or Loyalty Regular Saver Issue 2 account in their name.

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The account allows money to be withdrawn once a year without penalty, or when the account is closed.

The Loyalty Regular Saver can be opened in branches and agencies as well as online for members who are already registered.

Hayley Tepliakov, senior manager of savings proposals at the Yorkshire Building Society, said: “Our founding aim as a building society is to help people build their financial resilience and get the most out of their savings.

“We are committed to exploring ways to help our members achieve their financial goals or save for the future.

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“Regular savings accounts are one way to encourage our members to adopt healthy savings habits.

“We are really proud that this new account, which comes with a very 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 proven popular with savers and we are sure this latest edition will be just as well received.”

£500 per month saved at a gross AER of 5% would lead to a balance of £6,161.92 after 12 months.

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Interest is paid on the Loyalty Regular eSaver on the anniversary date of the opening of the account.

For example, if someone opened their account on August 14, the interest would be paid on August 13 of the following year.

After 12 months, the account will become an off-sale maturity account, a Six Access Saver, which currently pays 1.15%.

The Bank of England raised interest rates to 1.75%.

This could be good news for savers, as it could prompt more banks to raise the interest rate given on savings accounts as well.

Currently, inflation sits at 9.4%, which is not the base rate, but any extra money could be vital for low-income families.

The interest rate rose from 1.25% to 1.75%, its highest level since December 2008.

The Bank hopes to slow the pace at which prices rise, but has warned that inflation could rise to 11 percent later this year.



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