Yorkshire BS launch 3 & 5 yr bonds & ebonds paying 4.65% & 5.30%

Steve_xx

Yorkshire Building society will ditch the current 3 and 5 Year FIXED RATE BONDs and 2,3 and 4 Year EBONDS on 15 Sep

On 16 Sep they will launch and 3 and 5 Year FIXED RATE BONDS and 3 and 5 Year EBONDS paying increased rates:

3 Year FIXED RATE BOND: a fixed term branch and telephone operated account maturing 31.12.12 with a minimum investment of £100 paying 4.65% yearly (4.55% monthly).

3 Year FIXED RATE EBOND a fixed term internet operated account maturing 31.12.12 with a minimum investment of £100 paying 4.65% yearly (4.55% monthly).

5 Year FIXED RATE BOND: a fixed term branch and telephone operated account maturing 31.12.14with a minimum investment of £100 paying 5.30% yearly (5.18% monthly).

5 Year FIXED RATE EBOND a fixed term internet operated account maturing 31.12.14 with a minimum investment of £100 paying 5.30% yearly (5.18% monthly).

For all of the above: No earlier access is permitted. Additions are possible whilst issues remain open.

lemonjelly

This is interesting. There appreared to be a little bit of a shuffle amongst financial institutions to encourage investors with some tempting rates. This appears to have dissapated somewhat recently. With it now appearing that rates aren't going to rise in the near future, it may be a viable option to look at these longer term rates.

Steve_xx

Yes I think you're right. A lot is dependent on how much cash these banks and societies have and how difficult they find it to obtain money on the open markets.

I think generally, that things are settling in the banking industry, but I would not be surprised to see some more tales of woe and the possibility of some mergers.

I think rates for savers and mortgagees will have to ease upwards. Things cannot go on as they are.