Yorkshire BS launches bond paying 3.25%

Money and piggy banks

Yorkshire Building Society has released a new 18-month fixed-rate bond, which is paying a competitive 3.25% AER.

The rate beats most of those offered by the few 18-month bond providers - only Barnsley Building Society offers savers the same competitive rate.

The minimum investment required for the account is £1,000 and the account can be managed online, in branch or by post.

But remember, as with any fixed-term bond, early closures or withdrawals are not permitted. Additional deposits are allowed by bank transfer, but only while the account remains open to new customers.

With instant-access rates falling left, right and centre, locking your money away could be a good option, as bonds tend to offer more competitive rates than no-notice accounts.

Although the rates tend to rise with the length of the bond, many savers don’t feel comfortable locking their money away for, say, five years, so the 18-month term offered by Yorkshire BS may strike the ideal balance for some people.

The bond will mature on 31 March 2014 and interest can be paid monthly or annually.

You will need to act quickly if you want to secure this bond as it is a limited-issue product, which means it can be withdrawn at any time.

You can apply online at ybs.co.uk or by calling 0845 1200 100.