Top Payer: Yorkshire Building Society Pays 6% On Savings. But There’s A Catch…

Yorkshire Building Society is shaking up the savings market with a top paying one-year fixed rate bond at 6%.

Pros: Great headline rate of 6% APR on this account. Minimum deposit £1,000. One notice and penalty free withdrawal allowed in the term.

Cons: You cannot add to the account once opened. Your money is tied up – with the above exception of one withdrawal – until June 30, 2011. You must meet a Legal & General adviser in the branch, and also invest at least £5,000 in a longer-term investment bond with L&G.

Alternatives: Alliance & Leicester’s Premier Direct Current Account is currently paying 6% on amounts up to £2,500 deposited in it, providing at least £500 is deposited into the account each month. We recommend you withdraw this afterwards if you already have £2,500 in the account though.

This is a much better deal if you can put the money in upfront. On £2,500, you would get £150 in a year.

Further reference: Compare current accounts Related: Latest news