Fixed rate savings bond paying 3.40% from the Yorkshire

Yorkshire Building Society is introducing a new best buy savings bond. The 18 month bond offers a return of 3.40% gross/AER and matures on 31st July 2013.

Yorkshire Building Society Savings Product Manager Mike Helliwell said customers were still uncertain about interest rates and when they might change.

He said: "In the current climate, an 18 month bond is a good compromise for savers wanting to put away their money for more than a year but at the same time not commit to tie it up for the longer term.

"The rate is best buy and we expect this bond to be as popular as our previous short-term fixed rate savings bonds."

The bond is available online at ybs.co.uk.