Yorkshire Building Society launches new savings account with 'competitive return' ahead of interest rate cut
Greg Smith issues warning about tax on savings interest
GB NEWS
Yorkshire Building Society has launched a new variation of one of its most popular savings accounts which offers a "competitive return" for customers looking to help pay their shopping bills. This comes a week before a rumoured interest rate cut from the Bank of England.
The high street lender has launched its new Christmas Regular Saver account, with a variable interest rate of five per cent to help customers save for their 2025 festive spending.
This account allows monthly deposits between £1 and £150, providing flexibility for savers to access their funds on one designated day during the year without penalty. Customers can also close the account if needed, offering additional flexibility for unexpected circumstances.
The savings account is widely accessible, with options to open accounts through branches, agencies, or online platforms. The launch aims to support customers in building financial resilience while earning competitive returns on their short-term savings.
Recent research by the mutual reveals Brits planned to spend an average of £774 on Christmas in 2024. Over half of respondents (51 per cent) indicated they would spend up to £1,000 on festive expenses, including gifts, food, decorations and entertaining.
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Yorkshire Building Society is offering a savings accounts that provides "competitive returns"
GETTYThe study highlighted concerning borrowing patterns, with almost a fifth (18 per cent) of people expecting to rely on some form of credit to cover Christmas costs. More worryingly, over a third (36 per cent) of respondents anticipated it would take at least a year to repay their Christmas borrowing.
Analysis by Yorkshire Building Society and consultancy firm CACI has revealed £360billion is currently held in UK current and savings accounts earning one per cent interest or less.
This significant sum suggests many Britons could be missing out on substantial additional income by not moving their money to higher-interest accounts, the building society claims.
These findings come as banks, building societies and personal finance analysts encourage customers to review their savings arrangements at the start of the new year.
Savers are looking for accounts that will offer competitive returns
PEXELSThe latest data from Yorkshire Building Society highlights a clear opportunity for savers in Britain to maximise their returns by considering alternative savings products.
Harry Walker, a senior savings manager at the Building Society, outlined why the public should consider this latest offering from Yorkshire to prepare for Christmas present shopping.
He explained: "Our new Christmas Regular Saver encourages people to save money and help to spread the cost of Christmas. For those new to saving, using the regular saver will give shoppers a healthy sum to draw on for Christmas 2025 without having to rely on credit.
"For some people, it may also show that saving regularly can be achievable and if the habit is maintained after Christmas, a healthy savings pot can be built.
"With our recent data showing such large amounts are held in accounts paying one per cent or less, the start of a new year provides the perfect opportunity to take a close look at your finances and how you could make small changes which add up to much bigger returns.
"It doesn’t matter how you choose to go about it, making just one positive change to your finances, could make a big difference in the long term."
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The Bank of England's MPC will meet next month to discuss interest rates GETTY According to Walker, this particular account has demonstrated strong appeal, with last year's version attracting over 20,000 savers. These customers saved an average balance of £1,070 for their 2024 Christmas spending.
"We're really proud to offer this popular account again this year, which encourages saving little and often, and also offers a competitive return," the senior savings manager added.
It should be noted that Yorkshire Building Society's Christmas Regular Saver matures on October 31, 2025. This means customers will be able access to the funds in time for Christmas spending and popular shopping events like the Black Friday sales.
Savers have benefited from a period of high interest rates following recent action from the Bank of England, with the base rate currently sitting at 4.75 per cent. Analysts are predicting the central bank's Monetary Policy Committee (MPC) will cut rates once again at its next meeting on February 6.
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