Societies respond to call for short term savings

Yorkshire Building Society has launched a new bond for those seeking out the best savings interest rates.

The new bond - which pays savings interest rates of 3.5 per cent gross and matures after one year - has been introduced after customers suggested they wanted more choice in short-term investments.

It has been introduced with another bond which offers a term of 18 months and a competitive savings interest rate of 3.6 per cent gross.

"Customers are clearly keeping a close eye on interest rates at the moment and these new bonds give savers more choice," said Yorkshire's savings product manager Mike Helliwell.

He explained that as many people are expecting the base rate to rise in the very near future, they are loath to tie up their savings in long term accounts.

This is a fact which has also triggered a response by Principality Building Society.

The firm has launched an account offering a fixed rate of 2.51 per cent until the end of December this year.

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2011-06-22 13:13:10 © Moneyextra.com