Savings rates are at their highest in over 10 years but now one savings provider has said it is withdrawing one of its accounts offeering a competitive savings rate of 4.50 percent. Yorkshire Building Society is ending the offer on its Christmas Regular Saver on Tuesday, February 28, leaving potential savers with just days to benefit from this competitive interest rate.
The Christmas Regular Saver account was launched in January to help people save for Christmas spending and earn a competitive return on their short-term savings.
The account has a variable interest rate of 4.50 percent and allows customers to deposit between £1 and £300 per month while allowing access to their savings on one day in the year without penalty.
However, the accounts popularity has led to it being withdrawn, meaning there’s still time to benefit but only until February 28.
Chris Irwin, director of savings at Yorkshire Building Society, said: “This year’s version of the Christmas Regular saver with a competitive rate has proved really popular with savers, but with so much demand we’ve made the decision to withdraw the product from sale next Tuesday.”
He continued: “The account was launched to support savers with their Christmas spending for 2023.
“As we are now two months into the year we hope any last-minute savers will be able to act before next week should they wish to take advantage of an account that helps promote good savings habits at a good interest rate.”
Savers will still be able to open a Yorkshire Building Society Rainy Day Account (Issue 2) offering an Annual Equivalent Rate (AER) of 3.35 percent.
This interest rate is only on balances up to £5,000, but drops to 2.85 percent on balances over £5,000 and withdrawals are permitted on two days per year.
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Average easy access interest rates have hit their highest levels in 14 years, with easy access accounts paying high interest now.
Rachel Springall, finance expert at Moneyfacts, said: “The consecutive Bank of England Base Rate rises, coupled with competition among challenger banks, has led to both the average easy access and notice rates hitting their highest levels in more than 14 years.
“The number of accounts overall for savers has also grown, seeing its biggest month-on-month rise since March 2022 and choice now rests at the highest count since November 2022.
“These are all encouraging signs for the months ahead, particularly as we edge closer to a new tax year.”
While Yorkshire Building Society hogs the top spot with its Rainy Day Account, Paragon Bank’s Triple Access Account (Issue 11) comes in second place with an AER of 3.10 percent.
The account can be opened with £1 and up to three withdrawals are permitted without penalty.
Shawbrook Bank’s Easy Access Account (Issue 33) with an AER of 3.06 percent steals third place.
Customers will need at least £1,000 to open an account and can save up to £85,000 with no limits on the amount of withdrawals.
Meanwhile, Lloyds, Halifax and TSB are closing 68 branches in 2023 – people can check out the full list of closures.
More banks have confirmed they will be closing branches across the UK this year with confirmation from Lloyds, Halifax and TSB they will be shutting the doors on some of their high street venues for good.
Banks say it’s because more people are banking online but campaigners worry it will be older Britons, especially pensioners, who will end up missing out.
Some 54 branches close on average every month and experts fear it won’t be long until there are no high street bank branches left.
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