Yorkshire Building Society now does a 2.5% ‘Easy Access’ savings account

  1. I'm going to hold off making any moves for now. If YBS are at 2.5%, I'm expecting others to start coming in at 2.55% and climbing soon.

  2. I would expect easy access rates to broadly follow the base rate, so if the BOE announce another increase today (as rumoured) or in the near future, they'll go up again.

  3. First time in a while I'm thinking of putting non-emergency money in somewhere other than an index tracker. I'm now thinking of waiting until March, seeing what the best 3-4 year ISA rate I can get is (currently 3.5%) and have that cash ready to use again when it comes to renewing my mortgage, just in case the rates still cause a bump in monthly payments.

  4. Same. I prefer convenience, I’ve had the same current account forever and I don’t think the faff of changing is worth it for a one off switching bonus. However I would definitely consider moving my savings, but rather just do it once so I’ll see what the other banks do before picking one!

  5. Also a loyalty six access saver as well 2.5% up to £500k for those who have had an account with them over 12 months.

  6. 2,5 % when inflation hit over 20% seems like fair and balance deal 😉 . Better buy case of tuna or oil it double in price every year now

  7. My phone is absolutely crammed with new banking apps, with this rise in interest rates, I must have moved my cash around 6 times this past few months.

  8. A noob question I know but, I noticed that this account pays interest annually. What happens if you close the account before the year is up?

  9. Bear in mind Yorkshire are paying interest annually whereas Zopa is paying monthly. That's an important factor for me.

  10. "Allows withdrawals on two days per year based on the anniversary of account opening, plus closure at any time"

  11. If you open it today, you can have two withdrawals between now and 25th Sept 2023, with the two-per-year resetting on the 26th of Sept 2023.

  12. If you open an account today, you can make two withdrawals between now and Sept 25th 2023 inclusive. It is possible but not necessary for each withdrawals to be in a different calendar year; that's not a restriction they put on you.

  13. I have accounts with YBS and I have a loyalty regular savings account paying 5%. You have to have had an accountant with them for 12 months to qualify.

  14. I have 2 years left on my fixed mortgage. With the prospect of 5% deals when we come to renew my savings strategy has now changed to focus on mortgage overpayments rather than topping up savings.

  15. I just opened up an account with zopa and moved my emergency fund there, no issues with now switching that to this is there?

  16. I don’t think Zopa or YBS do credit checks, so there should be no issue with doing that (other than your time).

  17. I presume it's being referred to as easy access is because you can still close the account at any time: "The Online Rainy Day Account Issue 2 allows unlimited withdrawals from your account without loss of any interest on two days per account year, based on anniversary of account opening. You may also close your account at any time even if you have used all of your withdrawal days."

  18. Is the BoE really predicted to go up past 5%? Can now get renew my mortgage and will be paying a 40% monthly premium (vs current t payment) for a fixed so I was contemplating a tracker - or is this, in the name of the "messenger" from 300 - madness??

  19. Except it is an easy access account. Easy access accounts can limit the number of withdrawals, but they still allow at least one withdrawal and you're not tied to just keeping the money in for the duration or losing interest.

  20. No. The major high street banks are generally a pretty terrible place to keep your savings, as they rely on people being too lazy to move to places with better rates.

  21. My Marcus only went up the other day. Expecting my Tandem and Aldermore instant access accounts to do the same soon.

  22. Can someone explain to me what is the difference between APR vs gross before tax? Is the latter only applies in terms if savings will be taxed? So if i wont put £20k a year it doesnt matter to me?

  23. The difference between AER (APR is for borrowing) and gross is due to compounding on accounts which pay interest monthly, explained here:

  24. Inflation is totally irrelevant , that beyond anyone control. But the interest rate is , and 2.5% is better than 0% , if you have 100k that’s 2.5k a year .

  25. Isn't inflation atm at ~5%? So if the interest is less then isn't that a real terms loss? Would people not be better off investing in property/shares/gold/anything that won't depreciate?

  26. Saw that earlier although limited to two withdrawals which means it isn't truly easy access. I'm probably going to wait a few days before moving from Zopa (1.85%) as I reckon banks will start increasing their rates over the next 3-4 days.

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