Yorkshire Building Society has today launched two new fixed-rate savings bonds, one covering 18 months and the other for three years.
The 18-month bond offers a rate of 3.50% AER and can be arranged through branches or over the telephone. The minimum deposit on this product is £1,000. This rate falls just short of our most competitive fixed-rate Best Rate deals for one year.
YBS has also launched a second new deal which is a three-year e-bond paying 3.65% AER. Again, this rate falls just short of the Best Rates in this category and has a minimum deposit of £1,000.
Encourage savers to invest
Sarah Lawrence, group savings manager at YBS, said the deals were designed to encourage savers to invest: ‘We know that many savers are feeling frustrated with the current market as interest rates remain low, but we need to ensure that individuals are encouraged to invest and we hope that these new competitive products will allow them to do so.
‘With the Bank of England base rate expected to remain at its historic low, savers are prepared to lock their money away and these two new products will give them choice about which is more suitable for them – either 18 months or three years.’
Paul Davies, savings analyst at Which?, added: ‘Fixing for 18 months is appealing at the moment but there are some more attractive deals for 12 months only.
‘The new launch from Yorkshire Building Society reflects the increased competition in the fixed-rate bond sector with people looking to tie up money with no rise in the bank of England base rate on the horizon.’
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