Yorkshire Building Society yesterday relaunched its Easy Access Saver account which has the option for customers to choose between receiving their interest monthly, or annually.
This means savers have the flexibility to access their money while benefiting from either regular monthly income from interest or a lump sum on the anniversary of the opening of their account.
The new version of the account has a 3.65% variable interest rate and allows savers to access their money at any time, with unrestricted withdrawals.
The building society said the product is designed to meet the needs of customers looking for both flexibility and consistency, particularly those using savings to support everyday budgets.
Monthly or annual interest: What is best?
The launch comes as data from the building society showed nearly one in three (32%) of savers said they preferred their savings to pay interest monthly, while 60% said they felt satisfied when they saw interest added regularly.
Receiving interest payments frequently could also encourage people to save more, Yorkshire Building Society said, with almost half (49%) of savers admitting they would be more likely to save or increase deposits if they received interest more frequently.
Tina Hughes, director of savings at Yorkshire Building Society, said: “Many savers are looking for ways to make their money work harder for them day-to-day, not just in the long term. This account reflects that shift — giving customers flexibility to access their savings, while also providing an option to gain regular monthly income they can rely on.
“Our research highlights just how important this is. With the majority concerned about rising costs, and many telling us they value seeing interest added regularly, we wanted to create a simple, accessible product that helps people stay in control of their finances.”
Fixed rate savings account
For those happy to lock their money away for a year, Family Building Society’s latest 1 Year Fixed Rate Bond is paying an attractive 4.76% interest.
It has been flagged up by Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, as the ‘Pick of the Week’.
She said the deal had earned a prominent position as a Best Buy, offering an attractive 4.76% AER year.
Like the Yorkshire Building Society account, savers can also choose to receive their interest monthly.
Eastell said: “This account is likely to appeal to investors looking to guarantee their returns over the course of a year. As is the case with most fixed bonds, savers will not be able to access their cash for the full term, so it’s crucial that they plan carefully or have a backup plan in place.
“However, while the account requires a minimum £10,000 deposit, further additions can be made for 15 days from the account opening if investors aren’t happy with their initial amount. On assessment, the deal earns an Excellent Moneyfacts product rating.”
