Yorkshire Building Society increases perks on 5% Rainy Day Saver accounts

Ahead of this year’s UK Savings Week, Yorkshire Building Society has refreshed its popular Rainy Day (Issue Two) account to help people build financial resilience and reach their savings goals.

The account was launched last year to mark the first-ever national savings focus week, proving a popular addition to the mutual’s product range ever since.

The tiered interest account will benefit from interest starting at five percent on balances up to £10,000 – double the original £5,000 threshold of the account – and 3.9 percent on balances over £10,000.

Customers can deposit between £1 and £2million in the branch-based version or between £1 and £500,000 online.

The account offers people access on two specific days each year without incurring penalties, and they also have the option to close the account if needed.

READ MORE: Secure Trust Bank increases interest on fixed ISA to ‘excellent’ 5.6%

Chris Irwin, director of savings at Yorkshire Building Society, said “We are proud to be playing a leading part in this year’s UK Savings Week.

“While we know the rising cost of living is putting huge pressure on many households’ finances, our research shows that those who are able to put some money aside regularly, are saving more than they have previously.

“That’s why – in line with UK Savings Week encouraging people to get engaged with saving – it provides the perfect opportunity for us to refresh our Rainy Day account.”

Mr Irwin said the latest offering aims to encourage people to establish healthy savings habits, by either “continuing to build on” an existing safety net or by starting a new savings routine to provide greater financial resilience in the future.

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He added: “As savers start to see their balances rise, we want to reward their positive saving behaviours by increasing not only the rate on this popular account but also the amount that can be saved on the first tier. We hope these changes further demonstrate our commitment to supporting savers.”

Before the changes made today, the Rainy Day (Issue Two) account paid a higher rate of interest on the first £5,000. According to the mutual, savers who continue to save at this level will soon “eclipse” this figure as the account continues into its second year.

Customers who already have the account will automatically see their rate and tier increase without having to do anything.

New research from the Yorkshire Building Society shows that despite the cost of living challenges, there are signs of increased savings activity over the last five years.

Savers who are able to do so have been gradually increasing their monthly savings by nearly £100, raising it from £161 in 2019 to £256. This amounts to over £3,000 per year.

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Research from Gatehouse Bank, the Shariah-compliant challenger bank, found a rising number of people are prioritising saving over spending across the UK, with over 4.4 million adults having changed their attitude to money in the last year.

Gatehouse Bank found that over a third (34 percent) of UK adults naturally consider themselves a saver rather than a spender, with 44 percent of savers stating that they viewed saving as an essential outgoing of equivalent importance to their home finance or rent payments.

Ravi Kumar, senior product manager at Gatehouse Bank, commented: “The research shows a promising rise in the number of UK adults who class themselves as savers, demonstrating that people are actively shifting their mindset, which is really positive.

“In the current high-rate environment, it’s important to continue setting savings goals and putting away some money every month. Even a small amount will ultimately add up and doing so is also important for creating a healthy savings habit.”

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