Leeds launches income bond paying 4%
Leeds Building Society has launched a long-term fixed rate monthly income bond paying a guaranteed return of 4%, which is eight times Bank of England Base Rate (BBR), for 10 years. The bond, from the UK’s 5th largest building society, is specifically designed for those customers who are looking to boost their monthly income from savings.
Kim Rebecchi, Leeds Building Society Sales & Marketing Director commented, “We have looked at the savings market and, in this historically low interest rate environment where many customers are on fixed incomes, there is a need to generate an income from their savings. That is why we have launched this unique 10-Year Fixed Rate Monthly Income Bond that pays 4%. At the end of the product term, customers will have benefited from an income totalling 40% and still have all their capital.
“Our research also showed that the retail savings market for a term of 5-years plus shows that there is £37bn* on deposit. Therefore, for the right product, customers are prepared to invest for a longer period.”
The 10-Year Fixed Rate Monthly Income Bond has a minimum operating balance £10,000 per account and withdrawals are not permitted during the term.
Kim added, “This product, which offers eight times BBR and almost double the current rate of inflation**, will appeal to those customers looking for a fixed monthly income over the term and the peace of mind associated with the capital guarantee.”
For more information, customers can call into their local branch, visit the website at www.leedsbuildingsociety.co.uk or call the savings hotline, on 08450 540 995.
Notes to Editors
10-Year Fixed Rate Monthly Income Bond - Available from Wednesday 20th November
- 4.00% gross AER fixed until 31st December 2023.
- Minimum Investment £10,000 per account.
- Maximum investment is £1,000,000 (£2,000,000 for joint accounts).
- Monthly interest is paid on the last day of each month commencing 31st December 2013 and on maturity (31st December 2023).
- Interest must be paid out or transferred to another account with the society.
- No withdrawals are permitted at any time.
- Available to open in branch and by post from Wednesday 20th November.
TABLE TO GO HERE
Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £10.8bn (as at 30 June 2013). The Society has operated from the centre of Leeds since 1886.
**CPI = 2.2% - October 2013