A one-year savings bond that offers a variable savings rate has been launched by Yorkshire Building Society.

Initially offering a savings interest rate of 4.75 per cent, the society guarantees that the savings interest rate will never drop below 0.25 per cent more than the Bank of England base rate.

Only available for a limited period, the minimum deposit required to start saving money in the savings bond is £100.

Interest can be taken monthly or yearly and additional deposits can be made at any stage during the fixed one-year term.

The savings bond is aimed at those who want to start saving money for a fixed period of at least a year, while earning a guaranteed savings interest rate, says the savings product manager at the society, Chris Edwards.

We expect demand for the new bond to be high as feedback from customers has shown a desire for a choice between fixed rate accounts and a high interest variable accounts, he continues.

Mr Edwards adds that the new savings bond compliments the society's range of savings bonds , which also includes a one-year fixed rate savings bond with a savings interest rate of 4.65 per cent gross.