Have saver will travel

Yorkshire Building Society has announced a new tiered Bank of England (BoE) tracker savings account aimed specifically at the over 50’s savings market – the Advantage 50+ Saver.

The account features unlimited instant access to funds above the minimum balance of £5000, is branch based and has the added benefit of free annual European travel insurance included as standard. The account can only be opened in single names but the travel cover can be upgraded to include partners, children, and worldwide cover if required.

Interest rates are set each month at account opening and the differential to the BoE base rate will remain constant for the 12 month period of the account. Thirty days prior to the end of each 12 month period the customer will receive a letter from the Society with a range of options, including an offer to renew the product.

At launch the tiered structure is as follows:-

£5000 5.15% BoE – 0.35%
£25,000 5.40% BoE – 0.10%
£50,000 5.55% BoE + 0.05%
£100,000 5.75% BoE +0.25%

Chris Edwards, Head of Mortgages and Savings for Yorkshire Building Society said, ”When we decided to offer a new product for this important sector of the market we felt that it was important to differentiate our product from others out there. Despite the growth of internet- based products (ours included!) a lot of people in this sector of the market do like branch- based accounts. They are also the most prolific holiday makers with more than two thirds of all over 50’s taking at least one holiday in 2007 and a quarter have taken at least three trips away!”

Rachel Thrussell from Moneyfacts commented, "It is refreshing to see Yorkshire Building Society entering the over 50's savings market with an innovative approach. By launching a product that offers a combination of monthly interest, instant access, a decent interest rate and free European travel insurance, this account is likely to appeal to the frequent traveller with £5,000 or more to invest."