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Yorkshire Building Society is offering savings account with 5% rate - 'Highly competitive'

Daily Express logo Daily Express 12/08/2022 Patrick O'Donnell

The building society launched the limited issue Loyalty Regular Saver savings account last month. It has a five percent interest rate and savers are able to deposit up to £500 per month. However, the UK's inflation rate is currently at 9.4 percent and is expected to exceed 13 percent in the coming months.

Despite competitive rates, many savings options are unable to beat the current rate of inflation.

In response to inflation soaring, the Bank of England raised the nation's base rate to 1.75 percent.

Following this, banks and building societies have been passing on this rate hike to their customers through their savings products.

Aside from its "market-leading" interest rate, this particular savings account from Yorkshire Building Society allows money to be withdrawn on one occasion throughout the year without penalty, or if closing the account.

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Customers who qualify for this account can open up a Loyalty Regular Saver by applying online or visiting their local branch.

After a year, Yorkshire Building Society's latest offering will mature into an off-sale maturity account, Six Access Saver.

Once this change is made, the savings account will pay customers a smaller 1.15 interest rate.

Hayley Tepliakov, the building society's senior savings proposition manager said: "Our founding purpose is to help people build financial resilience and get the best value on their savings so we're committed to exploring ways that can help our members reach their financial goals or save for the future.

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"Regular savings accounts are one way we can encourage our members to establish healthy savings habits.

"We're really proud that this new account, which comes with a highly competitive interest rate and a generous monthly deposit limit is another example of how we reward the loyalty of our valued savers.

"Previous issues of this account have proved popular with savers and we're sure this latest edition will be equally as well received."

Recent research carried out by Aegon found that 69 percent of women are worried about their finances, compared to 56 percent of men.

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Steven Cameron, the pensions director at Aegon, outlined how inflation is leading to people "feeling the squeeze" on their incomes and savings.

Mr Cameron said: "Unfortunately, as we started to get back to normal after the pandemic, we've been hit by the worst cost of living crisis in most people's living memory.

"The research shows money worries now are even greater than during the pandemic. Many of our most vulnerable will face the greatest challenges with some already affected financially by the pandemic now being hit again by soaring inflation.

"But as prices rise throughout the economy, individuals across the income spectrum are concerned and feeling the squeeze."

The financial expert shared his concern over the "decrease in saving rates" in the UK which could hurt the country's long-term economic recovery.

He added: "Our research shows many are already taking action to cut costs by reducing day-to-day expenditure and cancelling unnecessary commitments.

"But worryingly, the research also points to a decrease in saving rates. While this may be unavoidable, it could have long-term implications on financial resilience.

"And when it comes to your pension, reducing or stopping contributions could mean missing out on employer contributions and having thousands less in funds to get by on in retirement."


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