Protected Capital Account will help keep pace with inflation

Yorkshire Building Society has announced the launch of their latest inflation linked Protected Capital Account. The new product will allow customers to keep pace with inflation while offering an attractive minimum return should the rate of inflation fall during their investment term.

Customers can invest in either an annual income plan or a maturity return plan (over a six year period) allowing them to choose which option is most suitable to their needs.

If they choose the annual income option, customers will receive an annual return which will be the greater of either 1.5% pa or the annual percentage change in the level of Retail Prices Index (RPI).

If instead they opt for the maturity return product, they will receive a return at maturity of the greater of 18% (2.79%AER) or the percentage change in the level of the RPI over the term.

Additionally customers can choose to invest their 2011/2012 Cash ISA allowance and transfer in previous years Cash ISA's meaning their investment will keep pace with inflation.

Commenting on the launch Relationship Manager from the Yorkshire, Stephen Midgley said; "The response to our previous PCA products has been very positive and we believe this is because many savers are concerned with the effect inflation is having on their investments.  Many are aware of the implications of inflation and want to protect the real value of their money.  With UK inflation (RPI) standing at 5.2%, the true benefits of this product are easy to see."

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 online ybs.co.uk / thechelsea.co.uk and barnsley-bs.co.uk.