Yorkshire Building Society has launched a new savings account with an inflation-beating interest rate of six per cent.
The new Christmas Regular Saver is intended to help people save regularly throughout the year for their Christmas 2024 spending, earn a competitive return on short-term savings and build financial resilience.
The regular savings account offers a variable interest rate of six per cent.
Customers can deposit between £1 and £150 per month.
Yorkshire Building Society’s regular savings account offers a variable interest rate of six per cent
PA
The account allows savers to access their savings on one day in the year without penalty.
Alternatively, they can close the account if required.
Customers can open the account in branches, agencies or online.
The Christmas Regular Saver matures on October 31, 2024, meaning savers can access the funds without penalty ahead of the festive period.
Chris Irwin, director of savings at Yorkshire Building Society, said: “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 2024 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.”
Almost £400billion is being held in current and savings accounts earning one per cent interest or less across the UK, according to analysis by Yorkshire Building Society and consultancy firm CACI.
More than half (55 per cent) of people have said they haven’t changed where they save their money in the last 12 months.
The building society is warning millions are potentially missing out on more than £1,000 a year in extra income being earned via savings interest.
Mr Irwin said: “Despite savings interest rates getting a lot of attention over the last year, following the significant increases in the Bank Rate, it’s surprising that there are still large pockets of people who are significantly missing out on savings interest – shopping around can now make a substantial difference to the returns available.
“Keeping large amounts of funds in low-paying current accounts has become a costly mistake for millions.
“It’s understandable to want to have money accessible for emergencies or even topping up everyday expenses, but with so many instant access savings accounts currently available in the market paying a much higher return, there has never been a better time to review the home of your savings.”
