Yorkshire Building Society has confirmed it will be raising the interest rates for all of its variable savings products.
The financial institution announced it will automatically add up to 0.25 percent to the impacted accounts.
This news follows the hike to the country’s base rate from the Bank of England yesterday.
Banks and building societies have been passing on consecutive base rate increases to their customers over the past year.
This move by Yorkshire Building Society will represent the 11th interest rate rise since February 2022.
As a result of this decision, the minimum interest rate paid on all accounts will be 3.45 percent.
Among the accounts that will be boosted include the Rainy Day Saver Issue 2 which will have a new rate of 4.55 percent on balances up to £5,000.
For balances above this level, the building society’s savings account will pay a rate of 3.90 percent.
As well as this, the financial institution’s Regular Saver will be awarded an interest rate of 5.25 percent.
Chris Irwin, director of savings at Yorkshire Building Society, shared why the financial institution is opting to raise rates at this time.
He explained: “With the Bank rate continuing to rise, we’re sure it will be welcome news to our savers to hear we’re increasing the interest rate on our accounts yet again.
“Our decision to pass on this latest Bank rate rise maintains our commitment to delivering value to our members.
“Increasing rates across all of our variable rate savings – including our member loyalty savings accounts – continues to reflect our purpose of supporting our savers.”
Lucinda O’Brien, the savings expert at money.co.uk, broke down what savers should expect following the Bank of England decision.
She said: “This is good news for savers, as if they currently have their money sitting in a savings account with low interest, the FCA will be questioning banks to ask why they aren’t increasing rates.
“Currently, the monthly average for instant access accounts stands at 3.13 percent and the monthly average for all savings accounts stands at 4.30 percent – both of which are well below the base rate of 5.25 percent.
“Hopefully, with the FCA putting pressure on the banks and with the news of another base rate increase, we should start to see more competitive averages.
“For now, the best way to get the most interest on your savings is to compare all savings accounts in the market. The averages might be weak, but there are some banks offering high-interest rates of more than six percent on some savings accounts. “
