Yorkshire Building Society has boosted its positioning in the market with a series of interest rate rises on its variable accounts earlier this week. The Building Society’s easy access saver is offering a new, competitive rate, and savers can get started with as little as £1.
Yorkshire Building Society’s Internet Saver Plus (Issue 12) is an easy access savings account, and this account type has been growing in demand in recent months due to rapidly rising costs, which has resulted in more Britons increasingly needing instant access to savings.
Easy access savers are typically one of the simplest accounts to manage as their flexibility enables payments and withdrawals with minimal restrictions and small opening deposit requirements.
Now, the Internet Saver Plus (Issue 12) is paying a tiered interest at a rate of 2.3 percent gross from the minimum deposit of £1, 2.6 percent gross from £10,000, and 2.65 percent gross from £50,000.
Described as “competitive” by money comparison site Moneyfacts, this account allows unlimited further additions and withdrawals and must be opened and managed online.
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Interest is calculated daily on cleared balances and paid annually on March 31. However, savers can choose whether it’s paid into the Internet Saver Plus (Issue 12) account, another Yorkshire Building Society account, or another building society or bank account.
But while this account offers a more attractive rate, there’s a chance it might improve further in due course.
A statement by Yorkshire Building Society reads: “The Bank of England raised its Base Rate from three percent to 3.5 percent on December 15, 2022. In response, we will be increasing rates again on our savings accounts soon and will update [the website] as soon as details of the changes have been confirmed.”
It continued: “We have not yet made a decision regarding our standard variable rate. This is currently under review. We will update our website when we do and write to customers whose interest rate is changing. This could affect your mortgage or savings account.
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Commenting on the rate, Rachel Springall, finance expert at Moneyfacts told Express.co.uk that savers “looking for a simple savings account” may find the Internet Saver Plus an “attractive choice.”
However, she noted: “Higher interest rates on easy access accounts with small balances can be found elsewhere, but some may limit withdrawals, so savers will need to check the terms carefully before they apply.”
According to Moneyfacts leaderboard of easy access accounts, Zopa’s Smart Saver is currently topping the list, offering an Annual Equivalent Rate (AER) of 2.86 percent.
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Coventry BS’ Limited Access Saver (Online) (6) and Earl Shilton BS’ Progress account make up the rest of the top three on the market right now, both also offering AERs of 2.8 percent.
A minimum of £1 is required to open Coventry BS’ Limited Access Saver and interest is calculated daily and paid annually on the anniversary of the date the account opened or monthly, at the end of the last day of each month.
However, as a limited access account, account holders are able to withdraw money up to six times a year without having to pay a charge. From the seventh withdrawal onwards (which can include closure), a charge equal to 50 days’ interest will be applied based on the amount being withdrawn.