Piggy Bank

Savings & Investments

Leeds Options Bond

Leeds Options Bond is only available in conjunction with a Portfolio Investment Bond from Aviva for long term growth potential combined with a one year Leeds Building Society savings account with tiered fixed rates depending on how much you invest.

A minimum of 60% of your overall investment is used to invest in a Portfolio Investment Bond from Aviva and the remaining funds, up to a maximum of 40%, are invested in the one year Leeds Options Bond (Issue 30).

For example, on an investment of £10,000, if £6,000 is placed in a Portfolio Investment Bond from Aviva then £4,000 is invested in the one year Leeds Options Bond (Issue 30). However, you can invest more than 60% in a Portfolio Investment Bond from Aviva if you wish.

The Portfolio Investment Bond is a lump sum investment bond with no fixed term. It offers a range of funds which are typically invested in equities, property and fixed interest securities. The value of your investment can go down as well as up and you are not guaranteed to get back what you put in. The minimum investment into a Portfolio Investment Bond from Aviva is £5,000. This is designed to be a long term investment, if you take money out in the first 5 years, early exit charges will apply.

Summary Box
Key Product Information for our Saving Account(s)
Account Name Leeds Options Bond Issue 30 Aviva's Portfolio
Interest Rates (AERs) Interest rates for Leeds Options Bond are given below. There is no interest paid on this account. The amount of return of capital will depend on the funds selected to invest in.The value of your investment in Portfolio from Aviva can go down as well as up and is not guaranteed. Please ask in branch for full details of your Portfolio.
Tax Status The gross rate(s) of interest shown for Leeds Options Bond will be payable net of the appropriate rate of income tax which may be reclaimed by non-taxpayers) or, subject to the required certificate, gross. Please ask in branch for full details.
Conditions for bonus payment There is no bonus available on this account. There is no bonus available on this account. Please ask in branch for full details.
Withdrawal arrangements Access is limited to one withdrawal without notice or loss of interest prior to maturity (30 September 2011) providing the minimum operating balance of £100 is maintained. If a second withdrawal is required or the operating balance falls below £100, the account will be closed. An exit charge will be applied to full or partial withdrawals in the first five years. However, for regular withdrawals of 7.5% per annum or less of the original investment early exit charges will not apply. Request for regular withdrawals needs to be mentioned when setting up the plan.
Access Account can be opened through any of our branches. Account can be opened through any of our branches.

How much interest will I earn?

Investment Annual Interest
% Gross§ p.a./AER† (Fixed)
£50,000+ 5.00
£25,000+ 3.50
£100+ 2.75
Investment Monthly Interest (Fixed)
% Gross§ % AER†
£50,000+ 4.75 4.85
£25,000+ 3.25 3.30
£100+ 2.50 2.53

Rates correct as at 25 August 2010.

Other Product Features:

Minimum and maximum investment and operating balance:

The minimum investment and operating balance is £100 and the maximum investment and operating balance is £250,000 (£500,000 for joint accounts). A minimum of 60% of your overall investment is used to invest in a Portfolio from Aviva and the remaining money, up to a maximum of 40% is invested in the Leeds Options Bond.

When is interest paid?

Interest is paid on maturity (30 September 2011), or monthly on the last working day of the month.

How is interest paid?

Annual interest can either be credited to the account or transferred either to another building society/bank account or to another account held with the Society. Monthly interest must be transferred either to another building society/bank account or to another account held with the Society.

Portfolio from Aviva - at least 60% of your investment

  • Portfolio from Aviva is a lump sum investment bond with no fixed term. It offers you a choice of investment funds typically investing in equities, property and/or fixed interest securities, which give a range of risks to suit your needs.
  • Portfolio from Aviva 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 a Portfolio from Aviva can go down as well as up and you are not guaranteed to get back what you put in.
  • The minimum investment into a Portfolio from Aviva is £5,000. No additional investments are permitted once a Portfolio has been opened.
  • 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, early exit 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. NB: Request for regular withdrawals needs to be mentioned when setting up the plan.

Leeds Options Bond – up to 40% of your investment

  • Leeds Building Society’s Leeds Options Bond (Issue 30) offers a competitive rate of interest which is fixed at up to 5% Gross§p.a./AER† paid annually, or up to 4.75% Gross§/4.85% AER† paid monthly (rates assumes a minimum investment of £50,000), depending on the amount invested until maturity (30 September 2011). We are able to pay you such a high rate of interest by sharing with you some of the commission we get from selling the Portfolio from Aviva.
  • On maturity the funds in your Leeds Options Bond (Issue 30) will become subject to the Society’s variable rate Premium Access Account Terms and Conditions. These are given in the Leeds Options Bond application form.
  • The minimum investment and operating balance is £100 and the maximum is £250,000, (£500,000 for joint accounts) (subject to your initial investment in the Leeds Options Bond not exceeding 40% of your overall investment when you open an Options Investment Plan). After the initial investment, no further deposits can be made.
  • You can make one withdrawal without notice or loss of interest, prior to maturity. If a second withdrawal is required, or the account balance falls below £100, the account will be closed.
  • The Leeds Options Bond (Issue 30) is only open to UK residents.
Full terms and conditions are given in the Leeds Options Bond application form.

§Gross means the rate payable before the deduction of income tax. The tax treatment depends on the individual circumstances of each customer and may be subject to change in the future. †AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.

Leeds Building Society is a member of the Building Societies' Association. The 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 of £50,000 or €50,000 (whichever figure is higher on the day of default) 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 and deposits are denominated in sterling, all other currencies are covered. Further details are available on request from the Society.

In relation to Aviva the Financial Services Compensation Scheme covers your plan. It will cover you if Aviva becomes insolvent and is unable to meet its obligations under this plan. For this type of plan, the scheme will cover you for 90% of the total amount of your claim. For further information, see www.fscs.org.uk or telephone 020 7892 7300.

The Society is covered by the Financial Ombudsman Service. The Society’s main business is the provision of savings products, mortgages and general insurance. The Society offers some savings products that may be operated through branches and by post and certain products which can be operated by post only.

Leeds Building Society is authorised and regulated by the Financial Services Authority and our registration number is 164992. You can check this on the FSA Register by visiting the FSA website at www.moneymadeclear.fsa.gov.uk or by contacting the FSA on 0845 606 1234.

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

Leeds Financial Services Limited represents only Aviva Life Services UK Limited, which is 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 Leeds Building Society and Aviva. Leeds Financial Services Limited is a subsidiary of Leeds Building Society.

© Leeds Building Society