Leeds launches competitive new 18 month savings bond
A new 18 month fixed rate bond with a highly competitive rate has been launched by Leeds Building Society.
The bond - with a return of 2.10% gross/AER - uniquely allows savers penalty-free access to up to 25% of their capital investment, and can be opened online, in branch or by post.
“This latest bond offers a competitive rate of 2.10% and we’re expecting to see strong demand for this limited issue product,” said Jaedon Green, Leeds Building Society’s General Manager – Products.
“The 18 month term is appealing for short-term savers who want something a little longer than a one year bond and it’s flexible - unlike similar products, savers can access up to a quarter of their money without notice or penalty.
“Investors with larger sums in savings accounts who are aware of the changes to FSCS protection which come into force at New Year* may already be looking to move some of their cash to continue to fully benefit from the compensation scheme.
“And with maturity occurring after the new personal savings allowance has come into force next April, most savers will receive their interest tax-free§.”
The minimum balance is £10,000 and further deposits can be made while the bond remains available.
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.
Notes to Editors
18 month fixed rate bond
- 2.10% gross/AER fixed until 2nd April 2017
- Minimum Investment £10,000
- Maximum investment is £1m (£2m for joint accounts)
- Interest paid on 31st August 2016 (credited to the account) and on maturity on 2nd April 2017
- Access permitted to 25% of the capital investment without penalty, no further withdrawals are permitted
- Available to open in branch, by post and online
* FSCS (Financial Services Compensation Scheme) protection currently will pay compensation to a saver up to the limit of £85,000 per authorised bank or building society (or group of banks or building societies) should that business become insolvent. From 1st January 2016, this limit will be reduced to £75,000, which is the sterling equivalent of €100,000, as required by the recast Deposit Guarantee Schemes Directive.
§ The new allowance, announced in March by the Chancellor, George Osborne, in his final Budget of the last Parliament, will remove the first £1,000 of savings income from income tax and is expected to benefit most savers.
Awards won by Leeds Building Society in the past 12 months include the ‘Innovation Award (Lenders)’ at the Mortgage Finance Gazette Awards 2015, in addition to being named ‘Best Intermediary Lender’, both for the second consecutive year. The Society also received the award for ‘Best Use of Technology (Lenders)’.
Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £12.7bn (as at 30th June 2015). The Society has operated from the centre of Leeds since 1886.