Yorkshire introduces new fixed-rate savings bond

The Yorkshire Building Society has launched a new savings bond with a fixed interest rate for two years of 5.35 per cent gross annually, or 5.22 per cent gross for customers who wish to receive their interest on a monthly basis.

A minimum balance of £100 has been set on the product, which has a maximum level of £500,000 and does not allow any withdrawals, with access on closure only.

Closure of the account is allowed before maturity once the bond has been open for six months, subject to the loss of 120 days interest.

In addition to the two-year account, a three-year option has also been launched with a fixed rate of 5.4 per cent gross, which is available only to existing Yorkshire customers.

David Heshon, product development manager at Yorkshire, said: “With interest rates increasing it’s great to be able to pass on the benefits to savers.

“Following the last base rate rise, Yorkshire has passed on the full increase to all its savings account holders, the new high rate bonds therefore complement the range of accounts we offer to savers.”