Yorkshire Building Society launches new monthly reward ISA

Yorkshire Building Society is launching an addition to its ISA range with the introduction of its Monthly Reward ISA. The new tax-free savings account pays interest each month when no withdrawals are made, giving customers an instant reward for maintaining their savings balance.
The interest paid in months where there have been no withdrawals is 2.96% / 3.00% AER. Recognising that many customers need access to their savings in December, monthly interest will still be paid even if withdrawals are made to buy Christmas presents! Instant access is available at all times on the account, but no interest is paid in the months where there have been withdrawals.

Unlike most monthly interest accounts, interest on the new ISA can be credited to the account enabling savers to effectively earn further interest on the interest payment. Alternatively the monthly interest can be paid to another Yorkshire savings account or an account with another building society or bank.

The minimum opening balance into the new account is just £10, however any existing ISA balances can also be transferred in. Any customer who opens an account before 14th March and then transfers a balance of £9,000 or more will receive £50 cashback.

Savers who have made the maximum deposit into cash ISAs since their launch will have accrued a balance of £36,600, excluding any interest they will have earned. As this account pays interest on a monthly basis the transfer facility may be particularly attractive for those who rely on their savings for income, and have recently experienced a significant reduction to their monthly income.

Chris Edwards, Head of Product Development at the Society said: "We are reacting to customer demand in this unprecedented low interest rate environment, and are delighted that we are able to offer a very competitive rate of interest to everyone. Often savers who need some access to their money are unable to benefit from higher paying savings accounts, however, this new ISA provides a great rate of interest when savings are maintained, with penalty only if withdrawals are made."