Leeds Building Society

If you’re an investor who wants to benefit from the growth potential of the stock market, but you don’t want to risk all your savings, you may face the problem of not always getting the return that you would like from your hard earned cash.

That’s why our hardworking Options Investment Plan may just be right for you combining
stock market growth potential plus guaranteed interest. Here’s how it works:

A minimum of 60% of your overall investment is used to invest in Norwich Union’s Portfolio and the remaining funds, up to a maximum of 40%, are invested in the one year Leeds Options Bond (Issue 20).

For example, on an investment of £10,000, if £6,000 is placed in Norwich Union’s Portfolio
then £4,000 is invested in the one year Leeds Options Bond (Issue 20). However, please
remember that you can invest more than 60% in Norwich Union’s Portfolio if you wish.

Summary Box Key product information for our savings account
Account Name	Options Investment Plan
Interest Rates (AERs)	See the "How much interest will I earn?" table below.
Tax Status	The gross rate(s) of interest shown will be payable net of the appropriate rate of income tax (which may be reclaimed by non-taxpayers) or, subject to the required certification, gross.
Conditions for bonus payment	There is no bonus available on this account.
Withdrawal arrangements	One withdrawal can be made without notice or loss of interest prior to maturity (31 October 2009) providing the minimum operating balance is maintained. If a second withdrawal is required or the operating balance falls below £100, the account will be closed.
Access	Account can be opened and operated through any of our branches.

How much interest will I earn?

Other Product Features:

Minimum and maximum investment and operating balance
The minimum investment is £100 and the maximum investment is £250,000 (£500,000 for joint accounts).

When is interest paid?
Annual interest is calculated daily and paid on maturity (31 October 2009).
Monthly interest is paid on the last working day of each month.

Leeds Options Bond – up to 40% of your investment.
Leeds Building Society’s Leeds Options Bond (Issue 20) holds a competitive rate of interest which is fixed at up to 9.00% gross § p.a./AER†, paid annually; or up to 8.75% gross§ p.a. paid monthly (9.11% AER†), until maturity (31 October 2009). We are able to pay you such a high rate of interest by sharing with you some of the commission we get from selling Norwich Union’s Portfolio.

On maturity the funds in your Leeds Options Bond (Issue 20) will become subject to the Society’s variable rate Premium Access account terms and conditions.

The minimum investment is £100 and the maximum is £250,000 (£500,000 for joint accounts and subject to the initial investment not exceeding 40% of your overall initial investment). The minimum operating balance is £100.

You can close or make one withdrawal without notice or loss of interest. If a second withdrawal is required, or the account balance falls below £100, the account will be closed.

After the initial investment, no further deposits can be made.

The Leeds Options Bond (Issue 20) is only open to UK residents.

Norwich Union’s Portfolio – at least 60% of your investment.
Norwich Union’s Portfolio is a lump sum investment bond with no fixed term. It offers you a choice of investment funds offering a range of risks to suit your needs and investment options typically investing in equities, property and/or fixed interest securities.

Norwich Union’s Portfolio is designed to be a long term investment. You can invest for as long as you like however there are exit penalties in the first five years. Unlike the deposit part, the value of your investment in Norwich Union’s Portfolio can go down as well as up and you are not guaranteed to get back what you put in. A tax charge might apply on full or part encashment.

The minimum investment into Norwich Union’s Portfolio is £5,000. No additional investments are permitted once Norwich Union’s Portfolio has been opened.

One of the funds available is the Guaranteed Fund which invests in a mix of assets including equities and is actively managed to provide a guarantee of at least your original payment into the fund on the fifth anniversary. As such, the mix of assets in the Guaranteed Fund may change from time to time to ensure the safety of your original payment. If you cash in earlier or later than the fifth anniversary, you may get back less than you paid in. Any withdrawals or switches from the fund will reduce the guaranteed amount in proportion to the number of units cancelled out of the fund, rather than by any cash amounts withdrawn.

There is a management charge, which is level throughout the lifetime of your bond. If you take out money from your bond in the first five years, additional charges will apply; for any full or partial withdrawals during the first 5 years there will be an early exit charge, the amount depends on when money is taken out. However, for REGULAR withdrawals of 7.5% per annum or less of the original investment, early exit charges will not apply if chosen at the outset.

Important notes

§ Gross means the rate payable before the deduction of tax .

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

Investments in this account will represent shares in the Society and are subject to the Rules of the Society. Member of the Building Societies’ Association. Leeds Building Society is a participant in the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. Payments under the Scheme are limited to a maximum payment of £50,000, that is 100% of the first £50,000 of an investor’s total shares and/or deposits in a society. Most investors are covered, including individuals and small firms. A small number of categories of shares and deposits are not covered, for example deferred shares – permanent interest bearing shares. Although most shares are denominated in sterling, all other currencies are covered. Further details are available on request from the Society. Leeds Building Society is authorised and regulated by the Financial Services Authority.

Leeds Building Society subscribes to the Banking Code which sets out standards of good banking practice for banks and building societies. Details of the Code are available at www.bankingcode.co.uk or in the leaflet "The Banking Code" published by the BBA/BSA. The Society is covered by the Financial Ombudsman Service. Leeds Building Society offers some investment products that may be operated through branches and by post and certain products which can be operated by post only.

Leeds Financial Services Limited represents only the Norwich Union Marketing Group, members of which are authorised and regulated by the Financial Services Authority.

Any financial advice given for life assurance, pensions and investments will relate only to the products of Norwich Union Marketing Group and Leeds Building Society.

The Society’s FSA registration number is 164992.

Other taxes or costs may exist that are not paid by Leeds Building Society.