Yorkshire BS launches top 4% interest savings deal for members
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Yorkshire Building Society has launched two market-leading savings accounts as this year’s Isa season draws to a close.
Both are limited access accounts, one with a 3.1 per cent rate aimed at attracting new savers, and the other, a market-beating 4 per cent rate aimed at its existing customer base.
Its Loyalty Six Access Saver Isa is available to members who either save or have a mortgage with the society, though they will need to have been a member for at least the 12 months prior to applying.
The account pays a flexible tiered interest rate of 4 per cent on balances up to £20,000 and 3.5 per cent on anything over that.
Top rate: Yorkshire BS are paying 4% interest to savers who have been a consistent member for at least a year, and also hold a mortgage or savings account
The account allows savers to deposit between £1 and £20,000 per tax year, as well as allowing previous years’ balances to be transferred in.
As the name suggests, savers will only be allowed to withdraw cash on up to six occasions throughout the year without penalty.
The account can be opened in branches and agencies, or online.
Chris Irwin, director of savings at Yorkshire Building Society, said: ‘As we approach the end of the financial year it is a traditional time for savers to take the final opportunity to top up their annual Isa limit and to start thinking about their financial plans for the year ahead.
‘We’re really proud that the Loyalty Six Access Saver Isa member account not only 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 at multiple times throughout the year.’
> Check out the best cash Isa rates here
What are the interest rates for non-members?
Those that haven’t consistently held a savings account or mortgage with Yorkshire BS for the last 12 months can still secure one of the best rates available on the open market.
Its Limited Access Isa pays 3.1 per cent but only allows customers to access their savings on one day a year without penalty, plus to close the account if required.
The account can be opened with a minimum balance of £1, and deposits can be made at any time during the year, up to £20,000 per tax year. Previous years’ balances can also be transferred in.
Similar to the Loyalty account, it can be opened in branches and agencies, or online.
Irwin adds: ‘The Limited Access Isa is likely to appeal to savers hoping to take advantage of a good interest rate, but who may need access to their funds.
‘Previous limited access accounts have proved popular with savers and we’re sure this latest edition will be equally as well received.’
How easy is it to transfer a cash isa?
Cash Isa transfers can take up to 15 days to complete. Savers simply need to get in touch with the new provider they wish to join and fill in an Isa transfer form. The new provider will then take care of the rest.
Those transferring from one Isa provider to another during a tax year don’t have to worry about the end of the tax year either as it won’t affect their annual £20,000 Isa allowance.
Should you sign up to Yorkshire’s deals?
The limits on withdrawals may put off some savers, particularly with the 3.1 per cent Limited Access account only allowing access on one day each year.
Savers looking for maximum flexibility may prefer Cynergy Bank, which is paying 3.05 per cent for total access.
Paragon Bank’s Limited-access deal pays 3.1 per cent, albeit resticting customers to three withdrawals. After that the rate plummets to 0.75 per cent.
In terms of the Loyalty account, six withdrawals is quite generous for a limited access deal. Many only allow up to two or three withdrawals per year.
Any members of Yorkshire BS who are eligible for the Loyalty account would therefore be wise to consider the far higher paying Limited access deal.
Someone stashing £20,000 in Paragon’s deal will earn £610 in interest after one year compared to £800 in Yorkshire BS’s loyalty account.
One alternative option is being offered by Investment platform, Hargreaves Lansdown.
It is currently offering £100 cashback to customers who open its Limited Access Cash Isa account paying 3 per cent interest.
It’s available via Hargreaves Lansdown’s Active Savings platform*. The money is held by Coventry Building Society.
Savings boost: Hargreaves’ Limited Access Cash Isa pays 3% interest. Taking the £100 bonus into account, that rate would effectively be boosted to 4% for those depositing £10,000
The account allows up to six withdrawals a year without a charge, and savers will need to deposit at least £10,000 to be eligible for the £100 bonus.
Adding the cash bonus to the interest payments means someone depositing £10,000 in this account would effectively secure a 4 per cent rate.
This means they would earn £400 in interest over one year – if the rate remained the same.
However, the offer is only eligible to those using their 2022/23 or 2023/24 allowance.
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