Yorkshire Building Society has announced it will be adding 0.25 percent to its variable rate savings accounts in a move to “put its members first”.
The increase marks the ninth time Yorkshire Building Society has passed Base Rate rises on to savers since February last year and means the minimum interest rate paid on instant access accounts will rise to 3.05 percent and those with restricted access accounts will see rates rise to a minimum of 3.25 percent.
On sale account interest rates will also increase to a minimum of 3.05 percent, which includes its Rainy Day Saver Issue Two rising to 3.85 percent on balances up to £5,000 and 3.35 percent above this level.
The Limited Access ISA will also benefit, going to 3.60 percent.
All qualifying accounts will be updated automatically with the changes coming into force from May 17. Customers will not have to do anything to get the higher rate.
READ MORE: Bank of England increases interest rates again to 4.5 percent
Chris Irwin, director of savings at Yorkshire Building Society, said: “Our decision today to pass on the full Bank base rate rise to our accounts continues to reflect our mutual ethos of putting our members first.
“Increasing rates across our range, including our most popular products and our member loyalty savings accounts – continues to reflect our purpose of supporting savers.”
He added the Building Society are also “really pleased” to be able to implement the changes next Wednesday so customers will see their accounts benefit from the increase within a week of today’s announcement.
Savings interest rates have been growing increasingly competitive since the first Bank of England Base Rate hike at the start of last year.
Adam Thrower, head of savings at Shawbrook, said: “Savings rates don’t automatically change in response to the Bank of England fluctuations. So if you haven’t moved your money since interest rates began to climb, you could be literally throwing money away.
“Ignoring your rate means you’re neglecting a really easy way to reduce the impact of inflation eroding the value of your savings, and potentially growing your pot if the rate you earn starts to exceed the rate of inflation. “
More than two fifths (42 percent) of savers surveyed are saving into accounts earning less than 2.5 percent; more than a quarter are paying into accounts earning two percent or less and 10 percent of savers are simply unaware of their savings rate altogether.
Mr Thrower said: “Switching requires considerably less time and effort than many people think. It is in savers best interest to jump at the chance to make themselves more money by switching to a new provider.
“Even if we see rates rise further in the next couple of months, high rates won’t be around forever so don’t ghost your savings any longer, switching now will allow you to reap rewards now and into the future.”
