Back to October 2017

New Leeds 1.35% one year ISA is High Street market leader

Leeds Building Society is increasing the rate on one of its most popular savings products, making it the market leader on the High Street.

On Friday, 6th October, the Society will improve the rate on its one year fixed rate ISA to 1.35% tax-freepa/AER*.

The move comes as latest industry figures show almost  £50bn of ISA savings in the UK is sitting in accounts which pay 0.25% or less.

“ISAs are an important part of our savings range and we work very hard to offer consistent long-term good value,” said Richard Fearon, Leeds Building Society’s Chief Commercial Officer.

“The increased rate on our one year fixed rate ISA makes it market-leading on the High Street and, as we announced last month, from 24th October we’re increasing the minimum rate we currently pay across all member savings accounts to 0.50%§.

“More than one fifth of the UK’s total ISA balances is languishing in accounts which pay equivalent to Bank Base Rate or less so it’s worth checking if your money could be working harder.

“All our ISAs allow transfers in of previous years’ subscriptions, which maximises the benefit of receiving your interest tax-free.”

No withdrawals are permitted but deposits up to the subscription limit are allowed as long as the product remains 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.

£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

1.35% One Year Fixed Rate ISA (Issue 99)

  • 35% tax-freepa/AER* fixed rate ISA to 2nd December 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 (2nd December 2018)
  • Interest can be credited to the account, transferred to another building society/bank account or to another account held with the Society. The account will mature at midnight on 2nd December 2018
  • On the day after maturity (3rd December 2018), funds (including interest) will be transferred to an instant access ISA maturity account
  • No withdrawals/transfers are permitted, although they will be subject to 60 days’ loss of interest or an equivalent amount withdrawn/transferred
  • Can be opened through any of our branches, via our website or by post, and can be operated through any of our branches or by post

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.

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.

 

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