Yorkshire launches e-Bonds

Yorkshire Building Society is launching a new, internet based, fixed rate savings bond. The first issue is a one-year bond paying 6.20% gross/AER and is available until 31st May.

New bonds will then be launched frequently, with the rate set in line with market conditions.

The new bond is only available online, and takes advantage of the Yorkshire's completely paperless application process, where actual signatures and identification documents are not required in most cases. Savers are also able to deposit funds electronically from their debit card, which will earn interest days quicker than they would with a traditional cheque deposited by post.

The e-Bond can be opened with as little £100 and up to a maximum £500,000. Monthly interest is also offered for those individuals who rely on their savings for income (6.03% gross / 6.20% AER).

At the end of the term, the bond will mature into Yorkshire's Internet Saver account, which provides instant access to the funds and currently pays a competitive 5.75% gross/AER.

Additional e-Bonds will be launched by the Society in the coming months, with fixed terms ranging from 6 months up to 5 years. However these will only be available if customer demand is identified and competitive rates can be offered.

David Jackson, Yorkshire's Head of e-Commerce who has led the development of the Society's paperless online developments said "Increasingly people value the flexibility offered by the internet and the convenience of managing their lifestyle at a time and place that suits them. Every aspect of the new bond can be processed from a laptop without the requirement of printers and postal services, which I believe meets the demands of today's consumer."