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Yorkshire Building Society ISA Review 2020

Yorkshire Building Society is a finance industry leader that supports ISA saving accounts. We highlight some of the ISA accounts maintained by the society.
Kane Pepi
Author: Kane Pepi

Last Updated: March 17, 2020

YorkShire Building Society logo

If you don’t have much of an appetite for risk in the world of investing, then you will need to stick with a savings product that is covered by the FSCS. In this respect, ISAs are an excellent choice if you’re after a 100% risk-free investment that guarantees a rate of return. On the other hand, you should expect these returns to be super-low.

Nevertheless, one such provider that now offers a number of ISAs is that of Yorkshire Building Society. If you’re keen to find out what ISAs are available, how much they pay, and whether or not you need to lock your money away for a fixed-term, be sure to read our Yorkshire Building Society ISA review.

Although ISAs allow you to earn a certain amount of interest without paying any tax, you might be able to earn a higher rate with fixed-rated savings bonds. In fact, these are usually covered by the FSCS, so they’re still risk-free.

Pros and cons of Yorkshire Building Society ISAs

The Pros

  • Heaps of ISAs to choose from
  • Choose from a variable or fixed rate of interest
  • All backed by the FSCS – Your funds are 100% safe
  • Highest rates paid on No Access accounts
  • Also offers a Help to Buy ISA

The Cons

  • Fixed-rate savings bonds pay more

Yorkshire Building Society ISAs: What ISAs are offered?

Yorkshire Building Society logo

Yorkshire Building Society has a good number of ISAs available on its platform. The specific rate of interest will depend on a number of key factors, such as whether or not you are happy to lock the funds away for a fixed period of time, and for how long.

Check out the following list of ISAs – each of which has a comprehensive overview of the key points.

1. 1 Year Limited Access Saver - Up to 1.35% AER per year

If you’re after a standard Cash ISA that offers a reasonable rate of interest, then you can get 1.35% AER with the 1 Year Limited Access Saver at Yorkshire Building Society. As the name suggests, this does, however, come with limited access. Upon scrawling through the terms and conditions, we found that you will only be allowed to make one withdrawal during the 1 year term.

If you need to make more than this, you will need to close the ISA down and subsequently lose the tax-free status of the earned interest. As such, try to plan ahead with this particular ISA. You can get started with an investment of £100, which is somewhat unusual, as most building societies allow you to open an account with just £1.

Nevertheless, the interest is paid at the end of the 1 year term, and it’s variable – meaning that it could change during the term. When you do open the account, you will need to deposit the funds via your debit card – although this can be a card from any UK bank or building society.

Key Points:

✔️ 1.35% % AER interest per year

✔️ Required to deposit at least £100 to get the account open

✔️ Only allowed one withdrawal during the 1 year term

✔️ You’ll need to close the account and lose the interest if you need to make more than one withdrawal

✔️ Fund your account with a UK debit card

✔️ Interest rate is variable

2. Long-Term Fixed Rate ISA - 1.35% AER per year

If you like the sound of earning 1.35% AER in interest, but you want to guarantee the rate of return for longer, Yorkshire Building Society offers a couple of longer-term fixed-rate accounts. Notably, unlike the 1 Year Limited Access Saver – which comes with a variable rate, you get to lock in the 1.35% rate for your chosen term. You get to choose an ISA that matures in either 2024 or 2025, which at the time of writing will require you to lock the funds away for 4 or 5 years.

While locking-in the rate will allow you to know exactly how much your money is going to worth, it is important to note that you will not be able to access the funds until the term concludes. Yorkshire Building Society does note within its terms and conditions that withdrawals will only be considered in ‘exceptional circumstances’, although it doesn’t elaborate on this any further.

If you do meet these circumstances, you will need to close your account and take a hit for 180 days’ worth of earned interest. If you like the sound of this particular ISA, you can also get started with an investment of £100, and the entire account needs to be managed online. Furthermore, you will need to make your deposit via your UK debit card. Finally, the interest is paid annually.

Key Points:

✔️ Pays 1.35% AER per year

✔️ The interest rate is fixed

✔️ Chose a term that expires in either 2024 or 2025

✔️ No access to your funds apart from in exceptional circumstances

✔️ Get started with £100

✔️ Fund your account with a debit card

3. Short-Term Fixed Rate ISA - 1.20% AER per year

If you want to guarantee yourself a fixed rate of interest for a fixed period of time, but you don’t like the sound of having to lock your money away for up to 5 years, then you’ll need to consider the Short-Term Fixed Rate ISA being offered by Yorkshire Building Society. In a nutshell, you can guarantee yourself a fixed rate of 1.20% by locking your funds away until November 2020. As the rate is fixed, you know how much your money is going to be worth,

You will have the choice of receiving your interest on a monthly basis, or at the end of the term. Much like in the case of the other fixed-rate ISAs we have covered thus far, you won’t be able to access your money before the term concludes – apart from in exceptional circumstances. If you do, you’ll lose 60 days’ worth of interest, alongside an account closure. Once again, you will be able to get started with an investment of £100, and you can open the account online.

Key Points:

✔️ Pays 1.20% AER per year

✔️ The interest rate is fixed

✔️ Funds locked away until November 2020

✔️ No access to your funds apart from in exceptional circumstances

✔️ Get started with £100

✔️ Fund your account with a debit card

4. Internet Saver ISA Plus - up to 1.15% AER per year

All of the Yorkshire Building Society ISAs that we have discussed so far have been based on limited-access accounts, meaning you won’t be able to withdraw your money with ease. As such, if you’re not interested in having your funds locked away and thus – you want the freedom of being able to make withdrawals whenever you see fit, then you are best off going with the Internet Saver ISA Plus.

Although the headline offer comes with an interest rate of 1.15% AER, upon closer inspection this is only available if you are prepared to inject £50,000 or more into the ISA. Alternatively, if you’re looking to invest less than £1,000, then you will only be offered 0.40% AER.  Unfortunately, this is just the name of the game with Easy Access ISAs like the Internet Saver, as banks and building societies prefer it when you keep your money locked away.

Nevertheless, you can actually get started with an initial investment of just £1, and the account opening process can be completed online. Take note, the interest rate on offer is variable, so it could change at any time. Finally, you will need to make your initial deposit via your UK debit card.

Key Points:

✔️ Highest rate pays 1.15% AER per year – although you’ll need to deposit at least £50,000

✔️ Deposits of less than £1,000 receive interest of just 0.40%

✔️ No limitations on withdrawals – access your cash whenever you see fit

✔️ Interest rate is variable – so it can change at any time

✔️ Get started with £1

✔️ Fund your account with a debit card

5. Help to Buy ISA - up to 2.25% AER per year + 25% Government Top-Up

Outside of its traditional Cash ISA products, Yorkshire Building Society also offers a Help to Buy ISA. If you’re well versed on how Help to Buy ISAs typically work, then you should know the drill. Your deposits will bet matched by 25% by the UK government, up to a maximum of £12,000. This means that your 25% bonus will be capped at £3,000. As you most probably know, you can only open a Help to Buy ISA if you are looking to save for your first home purchase.

If you are, then you will also benefit from an additional 2.25% AER from Yorkshire Building Society. The interest rate is high because the provider knows that you will likely keep the funds locked away for a reasonable amount of time, as any withdrawals that are not linked to a home purchase will lose the 25% government top-up.

As is the case with all Help to Buy ISAs in the UK, Yorkshire Building Society will cap your first monthly withdrawal to £1,200. After that, you can only deposit £200 per month. However, you are free to open another ISA product at the building society concurrently, subsequently allowing you to maximize your 2019/20 ISA allowance of £20,000.

Key Points:

✔️ Pays 2.25% per year

✔️ Deposits matched by 25% by the UK government

✔️ Government bonus capped at £12,000 (£3,000 bonus)

✔️ You are free to open other ISAs

✔️ Get started with £10

✔️ Fund your account with a debit card

FAQs

Which Yorkshire Building Society ISA pays the highest amount?

If you are motivated purely by the amount of interest that you can earn, then you'll want to go with the 1 Year Limited Access Saver. The account pays 1.35% AER, and allows you one withdrawal during the one year term.

I might need to access my funds early. What's the best Yorkshire Building Society Easy Access ISA?

If you don't want to face the prospect of having your funds locked away, then the only option for you is to go with the Internet Saver ISA Plus. Take note, if you are looking to invest less than £1,000, you will only receive 0.40% AER in interest.

Are my funds safe at Yorkshire Building Society?

All of the ISAs offered by Yorkshire Building Society are fully backed by the FSCS. Therefore, as long as the total amount of money held at the building society does not exceed £85,000, your funds are completely safe.

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Kane Pepi

Kane holds academic qualifications in the finance and financial investigation fields. With a passion for all-things finance, he currently writes for a number of online publications.