Clydesdale and Yorkshire banks launch market-leading bonds

10 pound notes stacked

Two banks have launched an attack on the savings market with a range of fixed-rate bonds, which will bring a smile to the faces of savers.

Clydesdale and Yorkshire banks have released four new bonds, which have put them at the top of the one, two, three and five-year bond tables.

The new bonds include a one-year bond with a rate of 3.60%, a two-year bond paying 4.0%, a three-year bond paying 4.30% and a five-year bond with a rate of 4.70%.

Check out our top savngs rates for all the best deals currently on the market

Attractive rates

Those are all very attractive rates for savers who've had to put up with piddling interest rates over the last few years, although none of them beat inflation which is currently 5.6%.

It's highly unusual for a bank to launch an attack on four best-buy tables like that, but the reason for Clydesdale and Yorkshire banks' sudden generosity stretches beyond simple goodwill.

Their owner, National Australia Bank (NAB), has publicly stated that it wants to increase its presence in the UK market. "I am pouring all my energy into organic growth," says NAB's UK chief executive David Thorburn.

Given that the UK savings market is worth £1.1 trillion, it's hardly surprising NAB want a bigger chunk of the pie.

NAB's move hasn't gone unnoticed by other banks with Kent Reliance Building Society releasing a one-year bond with a rate of 3.6% and a lower minimum investment of just £1,000 – all the Yorkshire and Clydesdale bonds have a minimum investment of £2,000.