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Regular Home Saver Account

May 3rd, 2011 Comments off

Clydesdale and Yorkshire Banks (ybonline.co.uk) have recently introduced a new savings account to help First Time Buyers build a deposit and get a foot on the housing ladder.

Regular Home Saver, this is the name of the new savings account, provides a simple way to save monthly towards a deposit on a first home, with the flexibility to vary payments during the term and the added bonus of up to £1,000 cashback when taking a Clydesdale or Yorkshire Bank First Time Buyer (FTB) mortgage. (See product details)

The average UK First Time Buyer property costs an estimated £121,717 meaning a 5% deposit would be £6,085. Saving around £200 each month for two and a half years would achieve this target.

With First Time Buyer numbers close to an all time low; 10,500 First Time Buyer purchases in January this year (source CML), many relying on parental support, and the added costs involved in setting up a new home, there is a clear need for a greater link between saving and mortgages.


The key features of the Regular Home Saver Account are:

  • Minimum monthly deposit amount of £200
  • Minimum amount required to open and maintain the account is £200
  • Payments can be increased or decreased provided the minimum monthly deposit is made
  • Interest rate will pay and track Bank of England Base Rate (currently 0.5%)
  • Customers saving a deposit of at least 5% and taking a Clydesdale or Yorkshire Bank FTB mortgage will be eligible for £500 cashback
  • Customers saving a deposit of at least 10% and taking a Clydesdale or Yorkshire Bank FTB mortgage will be eligible for £1,000 cashback
  • 40 days notice for withdrawals
  • The 40 day notice period will be waived if the withdrawal is used as all or part of a deposit to purchase a property with a Yorkshire Bank first time buyer Mortgage
  • A minimum of 12 consecutive monthly deposits is required to be eligible for the cashback benefit with one payment holiday permitted during a calendar 12 month period
  • Interest is calculated on a daily basis and credited to the account on the last business day of each quarter in March, June September and December.
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