Saver of the week: Yorkshire BS fixed-rate bond
Yorkshire Building Society has launched a one-year fixed-rate bond, which is paying a competitive 3.55%.
The Fixed Rate e-Bond offers one of the best one-year fixed rates, only beaten by Cahoot's 3.6% one-year account. However, the latter requires a £25,000 initial deposit, while you only need a £1,000 deposit for the Yorkshire account.
The e-Bond can only be accessed online but there is a branch-based version, paying the same rate, for customers who prefer face-to-face banking.
As it is a bond, withdrawals or early closures are not permitted. Additional deposits are allowed, however, as long as the savings account remains open to new investors. Any further deposits must be transfers, either from another bank or building society account or another account held with Yorkshire.
Interest rates are fixed and you can choose to have it paid either monthly or on maturity, which is 31 July 2013.
This is likely to be a popular account so if you wish to apply you need to act quickly as it is a limited-issue product, which means it can be withdrawn at any time.
You can apply either online at the building society's website, ybs.co.uk, or by calling 0845 1200 100.
This is a mutual organisation owned by its members and not by shareholders. These societies offer a range of financial services but have historically concentrated on taking deposits from savers and lending the money to borrowers as mortgages, hence the name. In the mid-1990s many societies “demutualised” and became banks. One academic study (Heffernan, 2003) found demutualised societies’ pricing on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates. In 1900, there were 2,286 building societies in the UK; in 2011, there are just 51.