Yorkshire Building Society now offering 5% with loyalty savings account – are you eligible | Personal Finance | Finance
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The limited issue Loyalty Regular Saver is on offer through the mutual’s loyalty programme. Customers can deposit £500 a month.
The account allows money to be withdrawn once a year without penalty, or on closing the account.
Members qualify for the account if they have a savings account or a mortgage with the society.
The Loyalty Regular Saver can be opened in branches and agencies as well as online for members who are already registered.
Hayley Tepliakov, senior savings proposition manager at Yorkshire Building Society, said: “Our founding purpose as a building society 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.”
Interest is paid annually.
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After 12 months, the account will mature into an off-sale maturity account, a Six Access Saver, which currently pays 1.15 percent.
The Bank of England may increase the base interest rate again in August, to 1.75 percent.
Interest rates have already increased several times in efforts to tackle inflation, which has hit 9.4 percent.
Research by GetAgent.co.uk found that the proportion of disposable household income required to cover the average mortgage repayment is at by far its highest in a decade, hitting 27.6 percent so far in 2022.
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Chief executive of estate agent comparison website, Colby Short, said: “We’ve now seen several interest rate hikes in quick succession.
“This will understandably come as a worry to the nation’s homebuyers, who will be facing higher mortgage costs as a result.”
Sir Jon Cunliffe, from the Bank of England, said that rate setters at the central bank would do “whatever is necessary” to stop the surge in the cost of living.
He said: “We will do whatever is necessary to ensure that as this period of inflation goes through the economy, it does not leave us with a persistent domestically generated inflation problem.
“We will act to make sure that doesn’t happen.”
He also said: “What we expect is that the cost-of-living squeeze will actually hit people’s spending and that will start to cool the economy.”
Adrian Lowery, a financial analyst at Evelyn Partners, said that the recent rate increases were needed although they were “from a very low level”.
Mr Lowery said: “The top easy access rate is now about 1.5 percent and you can get about 2.7 percent on a one-year fix.
“These rates are being swamped by current levels of inflation but everyone needs to hold some savings in cash, and it’s better that it’s earning a visible amount of interest rather than the near-zero levels that had become the norm until recently.
“Savers might want to think before fixing their rate for more than a year at the moment, however, as the UK’s benchmark interest rate will rise further this year, and savings providers should hopefully follow suit.”
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