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Yorkshire Building Society has launched two new ‘easy’ savings accounts, which could provide the perfect home for savers on rainy days.
Britain’s second-largest mutual band has released a new edition of its Rainy Day Account which pays a differentiated interest rate of up to 2.5 percent.
Any balance up to £5,000 gets the top rate of 2.5 percent, while anything above that level gets 2 percent.
A person who deposits £10,000 therefore earns £225 in interest, or 2.25 percent, after one year.
Savings boost: Britain’s second-largest health insurance company has launched a new issue of its Rainy Day account, which will pay a tiered interest rate of up to 2.5 percent.
The account must be opened online. Savers can start as low as £1 and save up to £500,000 in the account – albeit at just £85,000 per person protected by the Financial Services Compensation Scheme.
However, it only gives savers access to their money two days a year without penalty.
Savers can also close their account at any time, even if they have already used their two withdrawal days.
This means that savers can withdraw their money three times every 12 months – albeit for the third time when they have to close the account.
According to the health insurance fund, nearly a third of adults said they would feel more financially resilient if they had more money in accessible cash.
Chris Irwin, director of savings at Yorkshire Building Society, said: “While we know that the rising cost of living is putting enormous strain on many households’ finances, our Rainy Day account is one way we can encourage people to save healthily, either by building on an existing safety net or by adopting a new saving habit to provide greater financial resilience in the future.
Meanwhile it is Loyalty Six Access Saver pays 2.5 percent and allows customers to deposit between £1 and £2 million.
The account can be withdrawn up to six times throughout the year without penalty, or if the account is closed.
To be eligible, savers must be members of the Yorkshire Building Society for a minimum of 12 consecutive months before applying and already registered for online access for the online version.
Mr Irwin added: “We are also very pleased that the Loyalty Six Access Saver member account not only further demonstrates our investment in our members, but also allows them to enjoy a year-long competitive return on their money, while give them access to their funds several times a year.’
How does it compare?
In terms of other limited access deals, it towers above the rest. Paragon Bank pays 1.8 percent on its triple access bill, Principality Building Society pays 1.78 percent on its dual access bill, and Nationwide pays 1.75 percent on its triple access deal.
However, there are some easily accessible deals that currently pay more than these rates while offering savers a lot more flexibility.
Al Rayan Bank will pay 2.1 percent for its easily accessible deal, Gatehouse Bank will pay 2 percent, while Ford Money and Atom Bank will pay 1.95 percent and 1.9 percent, respectively.
These providers all allow unlimited withdrawals, unlike the Yorkshire Building Society’s two withdrawal restrictions.
Savers who need regular access to their money are therefore likely to opt for one of these cheaper deals that offer more flexibility.
Savers who are comfortable with the policy of two restrictions per year can also take notice periods into account before signing up for the Yorkshire deal.
Cancellation accounts allow savers to withdraw their money after a notice period, usually between 30 and 120 days, giving them better returns than they would otherwise get with an easily accessible account.
Savers can still add money whenever they want. They can also withdraw multiple times, albeit that they have to wait several weeks or months to gain access.
The Bank of London and the Middle East currently offers a market-leading 90-day notice account with 2.52% notice.
Someone who deposits £10,000 into this account would earn £252 in interest after a year.
Investec also offers a 32 days cancellation period bill 1.97 per centt via the Raisin UK savings platform.
Raisin is also offering a £30 welcome bonus to This is Money readers, but they will need to open a new Raisin account through this link* or a link that comes from our website.
It offers savers the chance to increase their savings by £30 when they open and fund an account in the marketplace with a minimum of € 10,000.
This means that a £10,000 deposit into the Investec account through Raisin can essentially result in an effective return of 2.27 per cent after one year, including the £30 bonus.
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