Yorkshire Building Society launches new account paying 4.5% on savings

Martin Lewis explains the 1p savings challenge

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Yorkshire Building Society’s Christmas Regular Saver account has a variable interest rate of 4.50 percent and allows customers to deposit between £1 and £300 per month. Customers can access their savings on one day in the year without penalty, or close the account if required. 

To help customers prepare for next Christmas and not get into debt, Yorkshire Building Society has launched the savings account which should help people spread the cost.

Chris Irwin, director of savings at Yorkshire Building Society, said: “Our new Christmas Regular Saver encourages people to save money and help to spread the cost to avoid unnecessary expense or worse, debt.

“For those that don’t save money regularly, using the regular saver will give shoppers a healthy sum to draw on for Christmas without having to rely on credit. 

“For some people, it may also show that saving regularly can be achievable and if the habit is maintained after Christmas, it will help start to build up a healthy savings pot.”

He continued: “We don’t want to tell people how to spend their hard-earned money but covering the cost of Christmas, for many, can be quite daunting and stressful.

“Regular savings accounts are one way we can encourage our members to establish healthy savings habits.

“We’re really proud that this new account, while promoting saving little and often, also offers a competitive return.”

The Christmas regular saver matures on 31 October 2023 giving people access to funds in time for Christmas spending or even the Black Friday sales.

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Yorkshire Building Society is also increasing the interest rates on its existing variable rate savings accounts by up to 0.50 percent.

Savers will get at least a 2.55 percent rate on their savings as the minimum rate on all Yorkshire Building Society’s accounts is being raised to 2.55 percent automatically from January 17, 2023.

In the past 12 months, Yorkshire Building Society has passed on seven interest rate increases.

Mr Irwin said: “We try very hard to offer our members competitive rates on their savings, maintaining an average interest rate on our accounts which has been consistently higher than the market to reward their loyalty and in turn support their financial resilience in the current financial climate.”

Meanwhile, first direct Regular Saver customers could get up to seven percent interest on their savings but they may need to switch bank accounts and be able to save £1,000 in the first three months.

New customers switching to a first direct current account could get a £175 bonus, correct at the time of writing.

With this account people can save between £25 and £300 a month up to a maximum of £3,600 a year and will receive £136.50 in interest if they save the full amount.

They won’t be able to make any withdrawals for 12 months though and if they close the account before the end of the 12-month period, they’ll get a lower interest rate.

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