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Yorkshire Bank launches 5.10% fixed-rate savings

New 5-year bond pays 10 times more than base rate

Yorkshire Bank has launched new rates of up to 5.10% on its Term Deposit fixed-rate savings bond.

Interest rates on the new fixed-rate savings bonds start at 1.25% AER for savers seeking to tie up their cash for three months, rising to 5.10% AER if you’re happy to keep your savings with Yorkshire Bank for five years.

A variety of savings terms are available – savers can choose from three, six, 12 and 18 months and two, three and five years. The interest rate paid increases as the lock-in period lengthens. The minimum opening balance is £2,000, with a maximum of £5m.

Interest is usually added to your savings and paid out at the end of the term. However, a monthly or annual interest payment option is also available.

During the fixed term, only one withdrawal can be made, which requires five business days’ notice and terms and conditions apply.

Martyn Saville, Which? Money senior researcher, commented: ‘The account is a competitive choice for savers looking for a branch-based medium-term home for their cash. While the new bond isn’t competitive for shorter periods, the rate paid for the five-year term is not far off the market leaders for similar products. If you’re likely to need your cash within the period covered by the bond, though, this probably isn’t for you as early redemption penalties will apply.’

To find the best rates currently available on fixed-rate savings, check out the Which? fixed-rate savings account finder. If you haven’t used this year’s cash Isa limit, you should consider taking out one of these accounts first – you won’t pay tax on the interest, allowing your savings to grow faster than with an equivalent savings account. Find the top-paying cash Isa with Which? Best Buys.

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