Yorkshire Building Society yesterday relaunched its Easy Access Saver account, which gives customers the option to choose between receiving interest monthly or annually.
This means savers have flexible access to their money, while receiving either regular monthly interest income or a lump sum payment on the anniversary of their account opening.
The new version of the account has a variable interest rate of 3.65% and allows savers to access their money at any time with unlimited withdrawals.
The construction company said the product is designed to meet the needs of customers seeking both flexibility and consistency, particularly those using savings to support everyday budgets.
Monthly or annual interest: which is better?
The launch comes after building society data showed almost one in three (32%) savers said they preferred their savings to pay interest monthly, with 60% saying they felt satisfied when they saw interest added regularly.
According to Yorkshire Building Society, receiving interest payments frequently can also encourage people to save more, with almost half (49%) of savers admitting they would be more likely to save or increase their deposits if they received interest more often.
Tina Hughes, director of savings at Yorkshire Building Society, said: “Many savers are looking for ways to make their money work for them more on a day-to-day basis, rather than just over the long term. This account reflects that shift – giving customers flexibility in accessing their savings, while also providing the opportunity to receive a regular monthly income they can rely on.”
“Our research highlights just how important this is. With most concerned about rising costs and many telling us they appreciate regular interest increases, we wanted to create a simple, accessible product that helps people take control of their finances.”
Fixed Interest Savings Account
For those happy to lock away their money for a year, Family Building Society’s latest one-year fixed rate bond pays an attractive interest rate of 4.76%.
Caitlin Eastell, personal finance analyst at Moneyfactscompare.co.uk, named it her Pick of the Week.
She said the deal ranked prominently in Best Buy’s rankings, offering an attractive annualized yield of 4.76%.
As with the Yorkshire Building Society account, savers can also receive interest on a monthly basis.
Eastell said: “This account is likely to appeal to investors looking to guarantee their returns throughout the year. “As with most fixed rate bonds, investors will not be able to access their money for the entire term, so it is vital they plan carefully or have a back-up plan.
“However, while the account requires a minimum deposit of £10,000, further top-ups can be made within 15 days of opening the account if investors are not happy with their initial amount. The deal receives a Moneyfacts ‘Excellent’ product rating.”