Leeds Building Society to withdraw 10 year bond after strong demand
Leeds Building Society will withdraw its long-term monthly income bond with effect from close of business on Thursday, 14th August, after seeing strong demand for the unique product.
The Society launched the 10 year fixed rate bond in July to offer savers seeking monthly income a best buy return of 4% (4.07% gross AER), eight times Bank of England Base Rate (BBR).
"We introduced this long-term fixed rate bond to provide investors with the opportunity to generate monthly income from their savings," said Kim Rebecchi, Leeds Building Society's Sales and Marketing Director."
"Our previous 10 year monthly income bond in late 2013 was extremely popular so we expected similar levels of demand for this product."
"Longer-term investments like this have proved particularly appealing to savers on fixed incomes and offer them the security of knowing all their capital will be returned at the end of the term."
Leeds Building Society has helped more savers and borrowers than ever before as it reports strong interim results.
"The bond was launched in response to customer demand and we continue to explore ways to innovate with our products to support more savers and borrowers."
Notes to Editors
Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £12.1bn (as at 30 June 2014). The Society has operated from the centre of Leeds since 1886.
Leeds Building Society has won three awards for innovation so far this year, having been named 'Innovator of the Year' at the Moneywise Magazine Mortgage Awards 2014 for its Welcome Mortgage. This allows borrowers to pay 0% interest for the first few months of their term so they can free up cash to help them settle into their new home.
The Society also scooped the 'Mortgage Innovation Award' and was named 'Most Innovative Personal Finance Provider' at the Moneynet Personal Finance Awards 2014.