Thursday 30 March 2017

Yorkshire Building Society Introduces Market-Leading 1.15PC Account

Yorkshire Building Society

Yorkshire Building Society has increased the rate of its easy-access savings account from 1pc to 1.15pc, making it the highest rate on the market.

The account now offers more than previous leader RCI Bank's easy-access Freedom Savings account - which has either been top or joint top for more than 16 weeks, according to Moneyfacts, the data firm. The RCI account pays 1.1pc.

The Yorkshire account can be opened with as little as £100, however, there are a number of restrictions.

Despite a number of providers offering accounts that can be opened online, Yorkshire customers can only open this account in branch or by post.

Once the account is opened, savers can register to view transactions online, but withdrawals can only be made in branch or by post.

Access is also limited, as customers can only make withdrawals on one day of the year. The account can be closed any time.

After 12 months the account turns into a triple access saver, which currently pays a far lower rate of 0.6pc.

Savers may prefer to forgo the one day of access from the Yorkshire Bank account and tie up funds in a one-year fixed-rate bond to earn a significantly higher return.

For example, Atom Bank, the mobile-only provider, offers 1.6pc to those who can tie up funds for a year.

A balance of £15,000 would earn £240 in a year with Atom Bank, or £172.50 with the Yorkshire account.

Those without an Apple and Android device needed to open the Atom Bank account could still earn 1.51pc with Paragon Bank's one-year bond.

The interest earned on all these accounts may be tax-free depending on other savings income. Since April last year the personal savings allowance means basic-rate taxpayers can earn up to £1,000 a year in interest tax free, while higher-rate taxpayers get a £500 allowance. Additional rate taxpayers get no allowance.



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