Innovative 18-month bond from Yorkshire BSNew bond pays 3.5% AER
31 August 2011
Yorkshire Building Society is extending its portfolio of savings products with a new 18-month fixed-rate savings bond paying an attractive rate.
The new bond – which pays 3.50% AER – will be added to the Yorkshire Building Society's range of fixed-term savings products from 1st September and compares favourably with other current fixed-rate Best Rate deals.
The minimum amount needed to open a bond is £1,000 and savers can invest up to a maximum of £2,000,000. The 18-month bond matures in May 2013 and is available from any of Yorkshire Building Society’s 135 branches or by telephone.
18 months is an effective compromise
Mike Helliwell, Yorkshire Building Society's savings product manager, said of the new deal: 'We are finding that savers are still very uncertain about what will happen to interest rates in the short and medium term.
'Choosing an 18-month bond is a compromise between a one-year bond and investing your money for a longer period, although an existing savings bond, which pays 3.80% AER over a three-year term, remains very popular with savers.'
Fairly attractive rate on offer
The new offer was welcomed by Paul Davies, savings analyst at Which?: 'The idea of a fixed-rate deal lasting for 18 months will appeal to people wanting a decent rate but not willing to tie their cash up for too long, with the expectation that interest rates must rise at some stage.
'The rate of 3.50% beats the best rates on one-year fixed-rate deals, but you can get significantly higher rates on the best two-year fixed-rate savings accounts, which currently pay in the region of between 3.8% and 4.0%.'
- Check out all the current Best Rates deals on savings.
- Our guide will outline how safe your savings are.
- Make sure you use your Isa allowance before putting money into accounts that are taxed.
Which? Money when you need it
You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.
Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.
Or for money-saving tips, and news of how what's going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast
For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.