Yorkshire Building Society further increases interest rates amid 3.5% savings offer

Budget 2021: Rishi Sunak issues warning about interest rates

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The building society has committed to a further £16million in additional interest for savers. This is on top of the £20million already announced as part of the member loyalty initiative.

The mutual will make further increases to the interest rate paid on the majority of its variable rate savings accounts by 0.20 percent, it said.

For unrestricted access, the rate will rise to 0.50 percent.

Meanwhile, restricted accounts are to rise to 0.55 percent.

Yorkshire Building Society said almost 1.7 million customers will benefit from the changes.

They will come into effect from today, June 2.

The Society is automatically updating all qualifying accounts.

These include Internet Saver, Access Saver and Triple Access Saver accounts.

Any of the qualifying accounts opened up to January 29, 2021, will be included in the changes.

The member reward programme was started in January and it is designed to reward loyal members with good value, at a time of continuing low interest rates.

The building society has delivered a range of new accounts, including the regular savings account which offers a 3.5 percent rate for members who have been with the Society since the beginning of 2020.

The latest member reward account – the Loyalty Six Access Saver – will launch on June 2.

Savers with this account can benefit from a variable interest rate of 0.65 percent on balances up to £50,000, while allowing customers to deposit between £1 and £50,000.

Account holders are able to withdraw money on up to six occasions throughout the year without penalty, or if closing the account.

It is available to members who either save or have a mortgage with the Society.

Tina Hughes, director of savings at Yorkshire Building Society, said: “As part of our mutual heritage it’s so important to us that we give our members good value – our founding purpose as a building society is to help people with their savings.

“With the Bank of England rate at a record low, we’re conscious times are tough for savers, but we’re committed to exploring ways that can help our members establish healthy savings habits.

“Giving savers higher interest rates is just one way we reward loyalty from our valued customers.

“In addition to the £36million in extra interest for our savers, we’re really proud that the Loyalty Six Access Saver member account further demonstrates our investment in our members but also allows them to benefit from a competitive return on their money for a year, whilst allowing access to their funds throughout the year.”

Those who qualify for the new Loyalty Six Access Saver can open the account via telephone, by calling their local branch or agency.

After 12 months, the account will mature into an off-sale maturity account, titled Six Access Saver Issue 3.

This particular account currently pays 0.55 percent.

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