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Savers seeking monthly income offered new and unique 10 year bond paying 4%

Leeds Building Society has launched a long-term fixed rate monthly income bond with a best buy return of 4% (4.07% gross AER).

The innovative new bond – paying eight times Bank of England Base Rate (BBR) – has been introduced in response to customer demand and is aimed at savers looking to boost their monthly income from their investments.

"The 10 year fixed rate income bond we introduced towards the end of 2013 was extremely popular and we expect this latest bond to attract similar levels of interest," said Kim Rebecchi, Leeds Building Society's Sales and Marketing Director.

"In the historically low interest rate environment, a savings product with a competitive return which generates monthly income is particularly appealing to savers on fixed incomes.

"We know there are savers seeking longer-term investments and at the end of the bond's 10 year term, customers will have benefited from an income totalling 40% and still have all their capital."

The 10 year fixed rate income bond has a minimum balance of £10,000 and no withdrawals are permitted during the term.

For more information, customers can call into their local branch, visit the website at www.leedsbuildingsociety.co.uk or call the savings hotline, on 08450 540 995.

Ends

Notes to Editors

Key Features

10-Year Fixed Rate Monthly Income Bond – Available from Friday 25th July

  • 4.00%/4.07% gross AER fixed until 30th September 2024
  • 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 August 2014 and on maturity (30th September 2024)
  • Interest must be paid out or transferred to another account with the Society
  • No withdrawals are permitted at any time
  • Available to open in branch and by post from Friday 25th July

The table below shows the return on investment:

Capital Invested

Monthly Income

Total Income Received During 10 Year Term

£10,000

£33

£4,000

£25,000

£83

£10,000

£50,000

£167

£20,000

Leeds Building Society has won three awards for innovation so far this year, having been named ‘Innovator of the Year’ at the Moneywise Magazine Mortgage Awards 2014 for its Welcome Mortgage. This allows borrowers to pay 0% interest for the first few months of their term so they can free up cash to help them settle into their new home.

The Society also scooped the ‘Mortgage Innovation Award’ and was named ‘Most Innovative Personal Finance Provider’ at the Moneynet Personal Finance Awards 2014.

Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £11.2bn (as at 31 December 2013). The Society has operated from the centre of Leeds since 1886.