The £50 Regular eSaver launched on Tuesday (September 10) to celebrate UK Savings Week (September 9 to September 15, 2024).
The account is designed to encourage people to start a savings habit with the incentive of a market-beating interest rate. A recent study sponsored by YBS found that regular savers were 66% more likely to have high life satisfaction compared to those who don't save at all, regardless of how small the amount saved was.
Chris Irwin, director of savings at Yorkshire Building Society, said: “We know 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, whatever their age or experience with saving.
"We want to help people kickstart a healthy savings habit, improve their financial well-being, and are trying to promote a save-first buy-later culture to help people put aside money that will help build a financial safety net, achieve their savings goals or simply fund their next big purchase.
“Regular savings accounts are one way we can encourage customers to establish healthy savings habits. We’re really proud that this new account, while promoting saving little and often also offers a very competitive return and supports people to take action this UK Savings Week.”
How does the YBS £50 Regular eSaver work?
To open a YBS £50 Regular eSaver, savers must be:
- a UK resident
- at least 16 years old
Only one account can be opened per person and the account can't be held jointly. The application can be completed online and the account can be managed via the YBS mobile app.
Savers can deposit up to £50 a month for a period of 12 months with the minimum deposit being £1. Money can be withdrawn up to three times throughout the year without penalty. The interest rate is currently 8.00% but this is variable and can change.
Savers who deposit the maximum amount each month can expect a final balance of £626.01 inclusive of £26.01 in interest. This assumes that:
- they make deposits on the first of every month starting on October 1, 2024
- they don't withdraw any money
- the interest rate doesn't change
YBS won't automatically deduct income tax due on the interest you've earned, but unless you're a higher earner or have several other savings accounts, it's likely that you will be under the personal savings allowance of £1,000 and won't need to pay tax on the interest earned.
The best savings accounts paying over 5% in interest
The interest offered by YBS on its regular savings account is currently the best deal on the market if you're looking to save regularly. That said, Principality Building Society also has a 6 Month Regular Saver which currently offers an 8.00% interest rate. This is for a 6-month term, but you can save up to £200 a month.
If you're interested in exploring other options for your savings, check out our round-up of the best savings accounts paying more than 5% interest on your savings. While the recent cut in the Bank of England base rate has seen some savings rates fall, there are still several savings products on the market offering inflation-beating rates for those looking to save.
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