Back to August 2015

New 5 year bond from Leeds Building Society

Leeds Building Society is launching a competitive new five year fixed rate bond – with unique access - as part of a refresh of its savings range.

The bond – which pays 2.60% gross/AER – is available through all channels and is unusual among fixed rate products in allowing savers access to 25% of their capital investment without penalty during the five year term.

"In addition to a competitive return, our latest five year fixed rate bond is unique in offering savers access to up to a quarter of their money," said Jaedon Green, Leeds Building Society's General Manager – Product Development.

"When choosing a fixed rate bond there is always a trade-off between the most competitive rate and how long you're prepared to lock away your cash – by offering access to part of your savings, we're giving savers added flexibility.

"While inflation remains low – currently 0%, with a long-term target from the Bank of England of 2% - achieving a guaranteed return of 2.60% is an attractive option. With the new personal savings allowance coming into force in April, the majority of savers will receive their interest tax-free§.

"For longer-term savers seeking an ISA, our five year fixed rate ISA which launches on 6th August - paying 2.50% tax-free† pa/AER* - will be among the most competitive on the high street and, like our bond, offers 25% access penalty-free."

For more information, customers can call into their local branch, visit the website at or call the savings hotline on 08450 540 995.


Notes to Editors

Key Features

Five year fixed rate bond

  • 2.60% gross/AER fixed until 1st September 2020
  • Minimum Investment £100
  • Maximum investment is £1m (£2m for joint accounts)
  • Interest paid annually on 1st September, commencing 1st September 2016
  • Access permitted to 25% of the capital investment without penalty, no further withdrawals are permitted
  • Available to open in branch, by post and online

Five year fixed rate ISA (Issue 48)

  • 2.50% tax-free† pa/AER* fixed until 30th September 2020
  • Minimum Investment £100
  • Maximum investment for the 2015/2016 tax year is £15,240, less any amount invested in a Stocks and Shares ISA in the same tax year
  • Interest paid annually on 30th September, commencing 30th September 2016, and on maturity
  • Access permitted to 25% of the capital investment without penalty, no further withdrawals are permitted
  • Available to open in branch, by post and online

§ The new allowance, announced in March by the Chancellor, George Osborne, in his final Budget of the last Parliament, will remove the first £1,000 of savings income from income tax and is expected to benefit most savers.

†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.

Awards won by Leeds Building Society in the past 12 months include the 'Innovation Award (Lenders)' at the Mortgage Finance Gazette Awards 2015, in addition to being named 'Best Intermediary Lender', both for the second consecutive year. The Society also received the award for 'Best Use of Technology (Lenders)'.

Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £12.1bn (as at 31st December 2014). The Society has operated from the centre of Leeds since 1886.