Martin Lewis provides advice on savings accounts
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Yorkshire Building Society’s Make Me A Saver account is offering an attractive one percent interest rate on savings plus the opportunity to win a cash prize every month. Who can apply?
They can save a maximum of £150 a month and still receive one percent interest.
Higher interest rates could be found elsewhere but because this savings account comes without penalty, it could also double as someone’s emergency fund.
To be entered into the monthly prize draw, customers will have to save £50 a month.
They can save a maximum of £150 a month and still receive 1 percent interest.
Britons who save the maximum amount would have a savings pot of £1,950 before interest if they don’t make any withdrawals.
Chris Irwin, director of savings at Yorkshire Building Society, said he hopes it will encourage people to start a savings habit.
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Mr Iwrin said: “Now more than ever, with current and potential future economic uncertainty, it’s important for people to try and build their financial resilience where they can and for us as a Society to help people to save.
“We want to continue to help people establish a healthy savings pot and improve their financial wellbeing and are trying to promote a save-first culture to help people put aside money that will help build a nest egg.
“Regular savings accounts are one way we can encourage our members to establish healthy savings habits.
“It’s also no secret that savers are having a tough time at the moment with unfavourable market conditions, so we’re really proud that this new account, while promoting saving little and often also offers a competitive return with the chance to win a cash prize as an added bonus.”
Although the Bank of England increased its base rate from 0.25 to 0.5 percent in February, less than half of banks have passed this on to their customers.
Only 42 percent of banks have followed suit and increased rates on their easy access accounts.
In addition, data from Defaqto shows that some easy access accounts are still offering an interest rate of 0.01 percent.
The average easy access rate is now 0.25 percent, according to Moneyfacts.
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When choosing a savings account, Forbes suggest people should ask themselves six questions:
- What are you saving for?
- How do I want to access my account?
- How much do I need to deposit on opening?
- What is the minimum balance requirement?
- What are the account fees?
- What’s the AER?
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