The Yorkshire Building Society Group has followed the launch of its one-year savings accounts with longer three-year options for savers.
The group launched its table-topping one-year ISA recently, and has now added to this with three-year fixed-rate bonds and ISAs paying 2.50%.
The Yorkshire Building Society ISA can be applied for in-branch or by post, while the Chelsea Building Society’s account can be managed online.
The new accounts are among the top-performing accounts for this term, particularly in the market for ISAs.
The group’s new ISAs nudge just above the branch-based Cash ISA Issue 25 from Yorkshire Bank and Clydesdale Bank, which both return 2.45%.
The new tax-free accounts also allow savers to transfer in existing and previous years’ ISA funds, while savers will be able to access their cash in an emergency for the loss of 180 days’ interest.
The taxable fixed-rate bonds face greater competition, with providers Shawbrook Bank (2.75%), Aldermore (2.70%), and United Bank (2.70%) offering more.
However, the new accounts do enter the top ten in this sector, and require a minimum of just £1,000 to open.
The new accounts reflect the efforts that lenders are making to tempt customers into locking away their cash before the Bank of England initiates a sequence of interest rate rises.
Once this happens, there will be pressure on lenders to improve the returns on their savings accounts – although there is no guarantee that lenders will act swiftly, or that the full interest rate rise will be passed onto consumers.
But it is for this reason that experts urge savers to consider the risks of locking away funds for any considerable length of time.