Yorkshire Building Society launches new savings account | Personal Finance

Yorkshire Building Society has launched a new Regular Saver paying 8% interest, earning an ‘excellent’ rating on Moneyfactscompare.

The account allows customers to deposit up to £50 a month to help people build a healthy savings habit of investing money “little and often” while earning a “competitive” return.

By investing the maximum amount of £50 into the account per month, savers can accumulate a balance of £626.01 after 12 months at the current interest rate.

Commenting on the deal, Caitlyn Eastell, spokesperson for Moneyfactscompare.co.uk, said: “Yorkshire Building Society has this week launched its new £50 regular eSaver, which pays a market-leading 8%.

“This account is joint top of the sector and could appeal to savers looking to develop a healthy savings habit, as the offer allows them to put aside up to £50 per month.”

However, Ms Eastell stressed that the account can only be funded with new deposits at the institution. This means that customers cannot transfer existing savings from another account held at the same bank.

Ms Eastell continued: “It would also be wise for savers to consider withdrawals carefully, as early access is only permitted for three days plus account closure per year.

Overall, Ms Eastell said: “This product gets an excellent Moneyfacts rating.”

Yorkshire Building Society’s product is one of a number of competitive regular savings offers currently available, offering the potential for even greater returns.

Principality Building Society offers an annual interest rate (APR) of eight per cent. The account term is six months and up to £200 can be invested per month. The account can be opened with a minimum deposit of £1 and interest is paid at maturity.

Online bank First Direct comes in a close second with an APR of 7%. The rate is fixed for 12 months and customers can start with just £25.

Interest is calculated daily and paid when the account matures, exactly one year after it was opened. You can deposit between £25 and £300 per month in multiples of £5, but withdrawals are not permitted for the entire 12-month period.

For a full rundown of the best value savings accounts, from easy access to cash ISAs, check out our weekly updates.