Building Society launches new 8% interest savings account and earns 'excellent' rating
The savings account grabs the "joint-top" position within its sector.
Yorkshire Building Society has launched a new Regular Saver paying eight percent interest, earning an “excellent” Moneyfactscompare rating.
The account allows customers to deposit up to £50 per month to help people kickstart a healthy savings habit of investing money “little and often” while earning a “competitive” return.
By investing the maximum amount of £50 in the account per month, savers can amass a balance of £626.01 after 12 months at the current interest rate.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Yorkshire Building Society has launched its new £50 Regular eSaver this week, which pays a market-leading eight percent.
“The account grabs the joint-top position for its sector and may attract savers who are looking to build a healthy savings habit, as this offer allows them to put away up to £50 per month.”
However, Ms Eastell noted the account can only be funded with new deposits to the institution. This means customers can't transfer existing savings from another account held with the same bank.
Ms Eastell continued: “It would also be wise for savers to consider withdrawals carefully, as earlier access is only permitted on three days plus account closure per year.
Overall, Ms Eastell said: “This receives an Excellent Moneyfacts product rating.”
Yorkshire Building Society's product is one of several competitive regular savings deals currently available, offering the potential for even greater returns.
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Principality Building Society offers an Annual Equivalent Rate (AER) of eight percent. The term of the account runs for six months and up to £200 can be invested per month. The account can be opened with a minimum deposit of £1 and interest is paid on maturity.
The online-based digital bank First Direct falls just behind with an AER of seven percent. The rate is fixed for 12 months and people can get started with just £25.
Interest is calculated daily and paid on account maturity exactly one year after opening. Between £25 and £300 can be deposited per month in multiples of £5, but withdrawals are not permitted throughout the 12-month term.
