Yorkshire Building Society launches new savings bond offering 4.25 per cent interest rate

YBS customers will benefit from 4.25 per cent gross p.a/AER interest rate, which will be fixed until August 31, 2025.

The Society will make a one-off donation to FareShare of £5 for each charity bond opened.

The limited issue bond can be opened with a minimum balance of £1,000, and the maximum deposit for this account is £2million.

Britons will not be allowed to access their cash during the term of the bond. The bond is available in branches and agencies and online.

The launch of the fixed rate bond is aimed at raising money for its charity partner FareShare, to support the charity’s Building Skills for the Future programme which will help 2,500 people enter the world of work.

YBS aims to raise a total of £1million to fund its Building Skills for the Future programme.

The programme will run in seven of FareShare’s network partners in London, Bristol, Merseyside, Milton Keynes, Yorkshire, Edinburgh, and Cardiff.

The programme will offer coaching, support, practical workshops and work experience to help participants to secure full-time employment.

Chris Irwin, director of savings at Yorkshire Building Society, said: “Through our partnership with FareShare we’ve already started to help many individuals build their skills to help secure future employment and this new account is another great way for the Society and our members to support the charity.

“The account is ideal for savers who love to plan ahead, don’t want the temptation of being able to dip into their savings, and want a guaranteed, competitive interest rate which isn’t going to change for the duration of the account.”

Polly Bianchi, Director of Fundraising at FareShare said: “We are extremely grateful to Yorkshire Building Society for this initiative. For each charity bond opened, a donation will go towards our Building Skills for the Future programme.

"This will go a long way to helping equip 2,500 people with skills and knowledge to help them gain employment and become more financially resilient.

“The partnership with Yorkshire Building Society makes a vital contribution to our employability programme and will help thousands of people seek long-term employment in the food industry, as part of our important work to provide a hand up, not a hand out.”

The news of the new bond follows the Building Society's announcement to cut mortgage rates for the second time in two weeks.

As the Bank of England base rate decision looms, competition between mortgage lenders continues to heat up.

Market analysts believe the Bank of England base rate could come down on August 1, signalling lenders to lower the rates they charge customers.

Customers can benefit from a new product range when looking for mortgage deals including:

• A two-year fixed rate at 4.69 per cent (was 4.89 per cent), up to 75 per cent LTV, available to house purchasers, with a £1,495 fee and free standard valuation.
• A three-year fix at 5.04 per cent (was 5.29 per cent), up to 80 per cent LTV, available to house purchasers and remortgagors, with no fee and free standard valuation.
• And a five-year fix at 4.49 per cent (was 4.59 per cent), also up to 75 per cent LTV, available to remortgagors, with a £1,495 fee, free valuations and no remortgage legal fees.