Yorkshire Two-Year Fixed-Rate Savings Bond announced

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Yorkshire Two-Year Fixed-Rate Savings Bond announced

Thu 27th Apr 2006

The launch of a Yorkshire Two-Year Fixed-Rate Savings Bond has been announced today – the account will have an interest rate of five per cent gross or four per cent net per year.

Interest can also be received on a monthly basis for customers who rely on interest for their income, this will be received at a rate of 4.89 per cent gross, 3.91 per cent net.

Annual interest will be paid on July 31st in 2007 and 2008 and monthly payments will be made on the last day of every month.

Both new and existing customers are eligible for the product, which requires a minimum opening balance of £100 and allows a maximum opening savings level of £500,000.

Existing Yorkshire customers wishing to open the new account can make transfers from their existing accounts if they hold a Notice Saver, Access Saver or Variable Rate Bond.

"The new two-year fixed-rate product offers savers the certainty that their interest rate is protected irrespective of any reduction in the Bank of England base rate," said Chris Edwards, head of product development at Yorkshire.

Early withdrawals are not permitted on the Yorkshire Two-Year Fixed-Rate Savings Bond, access is only available on closure, although early termination of the account is allowed after six months, subject to 180 days' loss of interest.

On the full maturity date of the account – August 1st 2008 – customers' balances will be transferred into the Yorkshire Access Saver.