Leeds Building Society has launched a new savings account to help older people pay for their winter heating bill.
The Winter Fuel Saver account is available only to customers aged over 60 and pays interest at 5.12% through the winter months.
When winter is over on 28 February the account’s interest rate drops to 0.25%.
“The current low interest rate environment has put pressure on many individuals who rely on their savings to supplement their pensions and to pay their bills,” said Kim Rebecchi, Leeds director of sales and marketing.
“We have designed this unique product to pay an excellent guaranteed return in a way that helps savers, delivering an up front return at a time when bills are at their highest.”
An estimated four million UK households suffer from fuel poverty, where more than 10% of household income is spent on gas and electricity bills.
Pensioners have been disproportionately hit by rising energy prices as they usually live on a low, fixed income.
To combat the problem, the government has pledged handouts of between £125 and £250 for the over 60s to contribute towards winter fuel bills.
These payments rise to £200, £275 or £400 for the over 80s.
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