New fixed-rate bonds from YBS pay up to 4.60%Building society offers new savings deals
09 July 2010
Yorkshire Building Society (YBS) is launching a new range of fixed-rate savings bonds on Friday 11 July, all of which offer competitive interest rates for those savers looking to lock their money away.
The Society is to release two-, three- and five-year fixed-rate savings accounts, all of which will require initial opening deposits of at least £100. The interest rates payable on the bonds will be:
- 3.56% AER on the YBS Two-Year Fixed-Rate Bond (to 31 August 2012);
- 4.11% AER on the YBS Three-Year Fixed-Rate Bond (to 31 August 2013);
- 4.60% AER on the YBS Five-Year Fixed-Rate Bonds (to 31 August 2015).
Best fixed rate bonds
Yorkshire’s new fixed-rate savings accounts offer market-leading rates, but can be beaten by the very top deals currently available.
ICICI, the UK arm of an Indian bank, offers a rate of 3.70% AER on its two-year fixed-rate savings account, 4.15% AER on its three-year bond and 4.75% AER on its five-year fixed-rate bond. Although it is attached to an overseas institution, ICICI Bank is authorised and regulated in the UK, and all savings held with it are fully covered under the Financial Services Compensation Scheme.
Nevertheless, ICICI demands far higher initial opening deposits from its savers than YBS. To open any of ICICI’s bonds you’ll need a minimum of £1,000 – which may make the Yorkshire’s deals more attractive for some savers, despite the slightly lower returns on offer from its accounts.
Online savings accounts
On the other hand, keen internet users might be disappointed to find YBS’s fixed-rate bonds are only available in-branch or via one of YBS’s agencies. This means you can’t open an account online or move money around over the internet.
Which? savings expert Jo Langenhan said: ‘YBS’s new bonds offer highly competitive rates, which many savers will welcome in the current climate. In addition, the relatively low opening deposits these accounts require will be a bonus for some people.
‘However, the strictly offline availability of YBS’s deals may put some people off. If you prefer to operate your account online, by post or by telephone – none of which are possible with these accounts – use the Which? fixed-rate bond finder to search for an account that will suit your needs.’
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