Back to September 2017

Leeds improves fixed rate ISAs

Savers seeking tax-free returns have two new fixed rate products to consider from Leeds Building Society.

These are:

  • One year fixed rate ISA paying 1.20% tax-freepa/AER*
  • Two year fixed rate ISA paying 1.40% tax-freepa/AER*

“Most savers benefit from the Personal Savings Allowance§ but ISAs are still relevant, as a way to shield your savings from the taxman in the longer term,” said Richard Fearon, Leeds Building Society’s Chief Commercial Officer.

“Anyone who’s been saving into tax-free accounts since they were launched could have built up quite a significant nest egg by now.

“All our ISAs allow transfers in of previous years’ subscriptions so this maximises the benefit of keeping the returns tax-free.

“Our latest fixed rate ISAs are among the best on the High Street and part of our wider tax-free savings range, which offers a choice of fixed terms and easy access products.”

No withdrawals are permitted but deposits up to the subscription limit are allowed as long as the products remain open.

Ends

Notes to Editors

Tax-free means that interest payable is exempt from income tax.

*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.

§ Separate from ISAs, the introduction of the Personal Savings Allowance on 6th April 2016 means basic rate taxpayers can earn up to £1,000 in savings income tax-free. Higher rate taxpayers can earn up to £500.

The ISA subscription limit for the 2017/2018 tax year is £20,000, less any amount invested in a Stocks and Shares ISA, Innovative Finance ISA and/or Lifetime ISA in the same tax year.

Key features

1.20% One Year Fixed Rate ISA (Issue 98)

  • 20% tax-freepa/AER* fixed rate ISA to 31st October 2018
  • Minimum investment £100
  • Maximum investment is £20,000 in 2017/18, plus previous years’ ISA subscriptions
  • Interest is calculated daily and paid on maturity (31 October 2018).Interest can be added to the account, transferred or paid to another account with the Society
  • The account will mature at midnight on 31st October 2018. On the day after maturity (1st November 2018), funds (including interest) will be transferred to an instant access ISA maturity account
  • Withdrawals/transfers are permitted, although they will be subject to 60 days’ loss of interest or an equivalent amount withdrawn/transferred
  • Can be opened online and operated in branch

1.40% Two Year Fixed Rate ISA (Issue 94)

  • 40% tax-freepa/AER* fixed rate ISA to 31st October 2019
  • Minimum investment £100
  • Maximum investment is £20,000 in 2017/18, plus previous years’ ISA subscriptions
  • Interest is calculated daily and paid annually on 31st October (commencing 31st October 2018) and on maturity (31st October 2019)
  • Interest can be added to the account, transferred or paid to another account with the Society
  • The account will mature at midnight on 31st October 2019. On the day after maturity (1st November 2019), funds (including interest) will be transferred to an instant access ISA maturity account.
  • Withdrawals/transfers are permitted, although they will be subject to 150 days’ loss of interest or an equivalent amount withdrawn/transferred.
  • Can be opened online and operated in branch

 

Leeds Building Society was named Best Building Society Savings Provider in the Moneyfacts Awards for 2017, having also won this title in 2016. 

The Society won the title of Best Shared Ownership Mortgage Lender in the 2017 What Mortgage Awards, its second consecutive year of success in this category.

Leeds Building Society operates throughout the UK, Gibraltar and Ireland and has assets of £17.3bn at 30th June 2017 (£14.9bn at 30th June 2016). The Society’s head office has been based in the centre of Leeds since 1886.