Yorkshire Building Society to increase saving rates

thor

Froglet wrote:

Thankyou.

It is now between this one and Bradford and Bingley who are currently at 5% for a similar account.So i am waiting to see which ends up with the best rate.The Abbey isa was good but now stands at 4.65%,so even when they raise it it will not come close. I need one i can transfer in,and keep it as an internet account.Does anyone have any other contenders?

Abbey also have EASY ISA which pays 4.8% if you have managed to save £27K. I'm guessing you must have their postal isa like I did which pays 0.15% less. I got them to transfer from that to the Easy ISA knowing that there would be no hassle involved or much time wasted seeing that it is just moving from one account to another within the same financial organisation. If this gets the full 0.25% increase then it will come close to the YBS rate whatever that ends up being. At least you might not have to worry about your money going 'walkies' during a transfer.

KTF

The details are not in the Interest Rate section of their site:

The annual interest rate on our Internet Saver account will be increased to 5.10% gross (4.08% net) on 27th August 2006. The monthly rate will increase to 4.98% gross (3.98% net). These rate increases will apply to all existing 'Internet Saver' account holders and all new applications.

As the AER is the same on both the monthly and yearly option (although the gross rate is 0.10% less on the monthly option) would it not be better to go for the monthly one so you get the income?

Speculator

No. The interest you would get would be the same. If you left the monthly interest in the account, the amount of interest you would get after one year would be the same as the amount you would get if you choose to receive annual interest. AER (Annual Equivalent Rate)

pjr1969

Deleted_User wrote:

The YBS home page now states that the rate on both the Internet Saver and e-saver is being increased wef 27/8 (top right of page, 'what's new'). However it does not state what those rates will be, although I understand that the IS rate will be 5.10%. I guess the e-saver rate will be 4.70 + 0.25 = 4.95%?

(AFAICS The rates section of the web page has not been updated yet)

yes, they have updated the interest rate pages now. Rather strange that they already upped Internet Saver a few weeks before.

Anyway, my introductory letter from YBS said something to the effect of "at YBS we don't close accounts only to open nearly identical ones with a better interest rate ....."

But Internet Saver will now be 5.1% vs e-saver at 4.95% - identical accounts apart from E-Saver having a perpetual interest rate 'guarantee'.