Yorkshire Building Society has launched the one-year End Youth Homelessness (EYH) fixed rate bond that will see savers receive 1.35 per cent interest fixed until 31 December 2020.

The society will make a one-off donation to EYH of 0.10 per cent of all balances held in the bonds after the account has been withdrawn from sale.

EYH is a national movement of local charities working together to end youth homelessness in the UK. Yorkshire Building Society has been working in partnership with EYH since 2017.

The society says that high rents and upfront costs associated with starting a tenancy can make it difficult for homeless young people to secure their own home.

Through the partnership, Yorkshire Building Society intends to help vulnerable young people to live independently by providing rental deposit guarantees, home essentials grants and dedicated support.

To date, the partnership has helped more than 355 young people into their own rented homes and has raised more than £730,000.

The limited issue bond can be opened with a minimum balance of £1,000. Interest is payable either monthly or annually and the maximum deposit for the account is £2m. No access is allowed during the term of the bond.

Mike Regnier, Yorkshire Building Society’s chief executive, said: “Through our partnership with End Youth Homelessness we’ve already helped more than 355 young people facing homelessness into a home of their own but there is still much more to do. This new account is a great way for the society and our members to support EYH whilst, at the same time, helping to grow your savings.

“We are committed to providing people with a home of their own, including those who rent a property as well as buying one, because we believe that to build a successful future everyone needs a safe place to call home.”

Last year, 103,000 young people asked their local authority for help because they were either homeless or at risk of homelessness, according to Centrepoint. EYH charities collectively work with more than 30,000 young people who are amongst the most deprived in the country.

Nicholas Connolly, managing director for End Youth Homelessness, said: “Tragically, thousands of homeless young people across the UK are locked out of the housing market. If we are to end youth homelessness, we must break down the barriers young people face and empower them to stand on their own two feet. Our partnership with Yorkshire Building Society does that by helping homeless young people secure their own tenancies.

“The launch of the End Youth Homelessness Fixed Rate Bond is fantastic news for homeless young people: it will raise vital funds to give even more young people a chance to escape homelessness and secure a safe place to call home.”

As well as funding for EYH, Yorkshire Building Society last year updated its mortgage terms for landlords to enable them to offer tenancies to renters who receive benefits, such as former homeless young people.