Back to October 2017

New 1.11% easy access Leeds ISA best rate on High Street

Leeds Building Society has launched another market-leading ISA with its latest easy access online product.

The new Limited Issue Online ISA pays 1.11% tax-freepa/AER* and offers penalty-free access.

In addition to this year’s ISA subscription limit of £20,000, transfers in from previous years’ ISA subscriptions are permitted.

“Our new Limited Issue Online ISA is truly easy access, with no restrictions on withdrawals,” said Richard Fearon, Leeds Building Society’s Chief Commercial Officer.

“This latest variable rate product complements our existing ISA range and shows our commitment to offering good value products to members who want to keep their savings returns tax-free.

“There’s still a place for ISAs in savers’ financial planning - even after the introduction of the Personal Savings Allowance§ - but billions of pounds are sitting in ISA accounts which pay no more than Bank Base Rate.”

Latest industry figures show almost  £50bn of ISA savings in the UK in accounts which pay 0.25% or less.

Leeds Building Society has announced that from 24th October it will increase the current minimum rate paid across all member savings accounts to 0.50%

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.

£49.8bn of ISA balances, 21% of the total ISA market, are earning interest of 0.25% or less (source: CACI’s CSDB, July 2017, Stock, Value). CACI is an independent company that provides financial services benchmarking data and covers 85% of the high street cash savings market.

Leeds Building Society will increase the current minimum rate we pay to all our members to 0.50% across both ISAs and non-ISAs, from 24th October. The move will align rates based on functionality and access to create a clearer, more consistent range for savers, including bringing some closed-issue products into line. The Terms and Condition for all accounts affected are unchanged. The accounts remain variable, not linked to any other rate and can go up or down at any time.

Key features

1.11% Limited Issue Online Access ISA (Issue 3)

  • 11% tax-freepa/AER* variable to 31st January 2019
  • Unlimited withdrawals can be made subject to maintaining the minimum balance of £1,000
  • The account is limited issue and may be withdrawn from sale at any time
  • Minimum balance £1,000
  • Maximum balance £250,000, including 2017/2018 ISA funds, previous years’ ISA funds plus accrued interest credited to the account
  • Interest is calculated daily and paid on maturity on 31st January 2019
  • Matures at midnight on 31st January 2019 and on 1st February 2019 funds transfer to an instant access cash ISA maturity account
  • Interest can be credited to the account or transferred to another building society/bank account or to another account held with the Society
  • The account can only be opened and operated online

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.

 

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.