Banking/Savings Section

A Great Savings Account - It's Flexible & Pays 6.5% Interest

September 2006

The Yorkshire Building Society has just launched a great regular savings account called the Regular Saver. The details are as follows –

• Pays up to 6.5% gross interest per year
• The interest rate is actually split so the account pays 3% but a bonus of 3.5% is added if savers deposit between £10 and £500 every month for 11 out of 12 months
• The amount that you deposit every month can vary, for example this month you pay in £100, next month £25 and the following £75 etc
• One withdrawal is allowed each year with no financial penalty
• The account has a maximum deposit of £20,000

Summary

This is a good savings account with a great interest rate and some nice flexibility in that the amount you can deposit can vary every month. But it should only be opened by those that are disciplined to save every month, if not you’re better opening an account with someone like ING Direct who pay a flat 4.5% with no monthly deposits required and instant access to your money.

Finally, remember the account allows only one withdrawal per year so again this type of savings account is really designed for people who won’t need access to their money in a hurry or an emergency. And it's important to think about points such as these when looking at your likely financial situation over the next few years.

See Also

• The Yorkshire Building Society Regular Saver Account
• ING Savings Direct Account
• Top Tip! Manage All Your Online Bank, Savings & Credit Card Accounts From The One Webpage
• Find's list of Savings Accounts