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Leeds withdraws 4% Monthly Income Bond

Leeds Building Society will withdraw its unique long-term fixed rate monthly income bond, paying a guaranteed return of 4% for 10 years, with effect from close of business today. The bond, which pays eight times the current Bank of England Base Rate (BBR), is specifically designed for those customers looking to boost their monthly income from savings.

Kim Rebecchi, Leeds Building Society Sales & Marketing Director commented, “The take up since launch on 20th November has been significant, and we increased the amount originally anticipated for the product. This has now been fully allocated and, therefore, we are withdrawing the 10-Year Fixed Rate Monthly Income Bond.

“We looked at the savings market and, in this historically low interest rate environment where many customers are on fixed incomes, felt there was a need to generate an income from their savings.

“Clearly, we have seen that there is demand for the right longer-term savings product and we will look at the potential for developing other inflation beating products that provide the peace of mind associated with the capital guarantee.”

Ends

Notes to Editors

Key features

10-Year Fixed Rate Monthly Income Bond

  • 4.00% gross AER fixed until 31st December 2023.
  • Minimum Investment £10,000 per account.
  • Maximum investment is £1,000,000 (£2,000,000 for joint accounts).
  • Monthly interest is paid on the last day of each month commencing 31st December 2013 and on maturity (31st December 2023).
  • Interest must be paid out or transferred to another account with the society.
  • No withdrawals are permitted at any time.

The table below shows the return on investment:

TABLE TO GO HERE

Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £10.8bn (as at 30 June 2013). The Society has operated from the centre of Leeds since 1886.