Yorkshire Bank launches bond

With a rate of up to 5.10 per cent on the Term Deposit account, it could be the ideal product for those looking to put away a lump sum of cash to gain interest on it - and who do not plan to make any withdrawals or further deposits in the near future.

The minimum amount to be put into an account is £2,000, with the total increasing up to £5,000,000.

A fixed-term of three months up to five years is available, with a choice of when interest is paid out.

Those looking to supplement their income can receive their payments monthly, or, for those who those who want their payment in lump sums, it can be paid out either annually or on the maturity of the bond.

Setting up a bond can be a good way of funding next Christmas. Earlier this month, the bank announced that it anticipated that £750 million will be withdrawn from their ATM machines during December.