Yorkshire Building Society has launched a new savings account, paying a best buy rate of 1.15%, although withdrawals are limited to once a year.
Its Single Access Saver account tops the previous best rate – RCI Bank’s Freedom Savings Account, which pays 1.1%.
Yorkshire Building Society will pay the 1.15% headline rate on balances from £100 up to £2 million. Interest is paid either monthly or annually.
While this account can only be opened in branch or by post, there is online access once the account is active.
How does it stack up against the competition?
This is the best easy access savings account on the market, although a 1.15% rate is little to shout about. If you saved £1,000 in this account for a year you’d still only make £11.50 in interest.
The next best account is RCI Bank’s Freedom Savings Account which pays 1.1%. But remember this account is covered by the French deposit protection scheme, rather than the UK's Financial Services Compensation Scheme (FSCS). Even so, you are still protected up to the value of £85,000.
Close behind is Nottingham Building Society’s eSaver Instant. This pays 1.05% but only on balances over £1,000.
However, you also need to consider access to your cash. Yorkshire’s new account only allows one withdrawal per year, while RCI and Nottingham allow unlimited withdrawals.
Despite the new market leader all these accounts pay less than the current 2.3% rate of inflation. There are still a few savings and current accounts that beat inflation, read Moneywise’s guide to find the eight accounts paying more.
|Provider||Account name||Interest rate (AER)||Withdrawal restrictions|
|Yorkshire Building Society||Single Access Saver (Issue 3)||1.15%||Once a year|
|RCI Bank UK||Freedom Savings Account||1.1%||Unlimited withdrawals|
|Nottingham Building Society||eSaver Instant (Issue 7)||1.05%||Unlimited withdrawals|