You do not earn any interest on your Offset savings account(s). However, by linking savings to your mortgage, you only pay interest on the difference between your Offset mortgage balance and Offset savings balance(s). The money in your Offset savings account(s) therefore benefits from the equivalent of the interest rate charged on your Offset mortgage, as shown on the individual Offset mortgage product pages, or in the tables on the mortgage product factsheets.
The examples shown on the factsheets and on the product pages, assume that basic rate taxpayers pay 20% tax, higher rate taxpayers pay 40% tax and additional rate taxpayers pay 50% tax on savings interest and are based on current HM Revenue & Customs rules which are subject to change. Whether you can benefit from gross, net or tax free interest is dependent on your own personal circumstances and tax status and so may be subject to change in the future.
The equivalent savings interest rate examples are based on the current interest rate of the mortgage product(s). Therefore, where the rate on your Offset mortgage is variable or reverts to a variable rate after an initial fixed rate period, the benefit you get from your savings will change at the same time.
Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, loans, mortgages and more.
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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).
