As the cost-of-living crisis continues and energy bills soar, any extra cash could be vital for families feeling the pressure. With inflation forecast to hit 11 percent by the end of the year, savers may be wondering how to keep their money in the bank.
YBS launched its regular loyalty eSaver offering 5% AER.
Brits can deposit £500 per month into the account.
To be eligible to open a Loyalty Regular eSaver, individuals must have an open account (savings or mortgage account) with YBS as a primary holder, principal, or trustee for at least 12 consecutive months prior to application and must already be registered for online access.
Individuals can only have one Loyalty Regular eSaver or Loyalty Regular Saver Issue 2 account in their name.
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The account allows withdrawals once a year without penalty or upon account closure.
Loyalty Regular Saver can be opened online for branches and agencies as well as for already registered members.
Hayley Teplyakov, Senior Savings Proposal Manager, Yorkshire Building Society, said: “As a building society, our founding aim is to help people build financial resilience and get the best value from their savings.
“We strive to find ways that can help our members meet their financial goals or save for the future.
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“Regular savings accounts are a way to encourage our members to adopt healthy savings habits.
“We’re really proud that this new account, 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.
“The previous edition of this account proved popular with savers and we are sure this latest version will be just as popular.”
A saving of £500 per month at a gross AER of five per cent would result in a balance of £6161.92 at the end of the 12 months.
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Interest is paid in the Loyalty Regular eSaver on the anniversary of the account opening.
For example, if someone opened their account on August 14th, the interest will be paid on August 13th of the following year.
After 12 months, the account matures into an off-sale maturity account, a Six-Access savings account that 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 could prompt more banks to raise interest rates on savings accounts as well.
Inflation is currently at 9.4 percent, which is off the base rate, but any extra cash could mean something for low-income households.
The interest rate has risen from 1.25 percent to 1.75 percent, the highest level since December 2008.
The bank expects the rate of inflation to slow but warned inflation could top 11 percent later this year.