Inflation linked account opens at Yorkshire

Yorkshire Building Society has launched two exciting new deposit accounts which will see returns linked to inflation allowing customers to make the most of their savings.

The Protected Capital Account is a five-year product linked to the Retail Price Index (RPI) and will be available in either an annual income or maturity return option.

Benefitting our investors, the maturity return version will guarantee applicants the percentage change in RPI over the five-year investment period plus 1.5%.  For the annual income version applicants will be guaranteed an annual return of 0.1% plus the annual change in RPI over the 12 month period.

Simon Broadley the Yorkshire's Retail Investment Manager said "In the current economic climate with interest rates remaining at an historical low, and with significant press coverage around the high levels of inflation, the Society is keen to provide its members with a product that allows them to maintain the true spending power of their savings.  By choosing this product they can be confident that their savings will track inflation irrespective of what happens over the coming years".

"The Society has offered the Protected Capital Account for a number of years and it is a concept which our members find very appealing.  With the addition of these inflation-linked products we believe we are offering our customers a genuine opportunity to combat the negative impact of inflation offering value for money in a low interest rate environment".

"Additionally, if you haven't already invested in a Cash ISA during the 2010/11 tax year, you can invest your allowance of £5,100 in this PCA.  This means that PCA savings will stay ahead of inflation, as you won't pay any tax on them. You can even use your 2011/12 Cash ISA allowance before the next tax year begins, so you get to take advantage early."

The product, manufactured by Credit Suisse, will be available through all brands of the Yorkshire Building Society Group (Yorkshire Building Society, Chelsea Building Society and Barnsley Building Society) and can be opened in both branch and on the Yorkshire's website ybs.co.uk.

Customers will be able to invest from £3,000 to £85,000 in the account.