The one-year fixed rate bond will see savers receive 0.37% gross interest, with the rate fixed until 31 August 2022. Yorkshire Building Society will make a one-off donation to Age UK’s Building Better Lives Programme of 0.05% on balances held in the bond after the account has been withdrawn from sale.

The bond is part of a two-year charity partnership between Yorkshire Building Society and Age UK which aims to raise £1m to help support older people. Figures show that last year there were 2.1 million older people in the UK living in poverty. The money raised through the partnership will enable Age UK to deliver its Building Better Lives programme, strengthening the financial resilience of older people across the country.

The limited issue fixed rate bond can be opened with a minimum balance of £1,000, with a maximum deposit of £2m. Interest is payable annually and no access is allowed during the term of the bond.

Mike Regnier, Yorkshire Building Society’s chief executive, said: “Now more than ever, older people need a trusted place they can turn to for advice and support. The outbreak of coronavirus has intensified what was already a dire situation for thousands of vulnerable older people. This new account is a great way for the society and our members to support Age UK, at the same time helping to grow your savings.

“As some later life situations can lead to financial difficulties the Building Better Lives project will support older people facing these challenges to strengthen their financial resilience.”

Laurie Boult, fundraising director at Age UK, said: “Age UK exists to be there for older people when they need us the most, and that time is now. The pandemic has sharply accelerated the needs of significant numbers of older people, and as the vaccine roll out continues and restrictions start to lift, Age UK will need to continue to be there for those most vulnerable.

“The launch of the charity fixed rate bond will raise vital funds to help Age UK support older people through some of the most challenging times in their lives. Through a network of local Age UKs, the Building Better Lives programme will provide one-to-one support to help prevent more than 4,700 older people most in need from reaching financial crisis point and to look to the future with hope.”