Back to October 2018

New 1.36% instant access ISA launched by Leeds

Leeds Building Society is launching a new online-only ISA paying a rate of 1.36% tax-free pa/AER*, as new figures shows £42.5bn[i] of variable-rate ISA savings are earning 0.25% or less.

The Society’s new Limited Issue Online Access ISA will be launched on Thursday, 4 October, and offers penalty-free instant access as well as tax free returns.

Industry data showed that in July this year 8.6m variable rate ISA accounts in the UK – containing savings totalling £42.5bn – were earning 0.25% or less.

Jaedon Green, Leeds Building Society’s Director of Product and Distribution, said: “As we reach the halfway point in the financial year, it’s an ideal time for ISA savers to give their investment a quick ‘MoT’.”

“ISAs remain a popular choice among our savers and our newest online product complements our range of tax-free savings accounts.

“Many other providers have seen reduced demand for ISAs whereas we continue to perform strongly in this market and offer a choice of fixed and variable products across different channels so our members can pick the one which suits them best.

“The introduction of the Personal Savings Allowance may have made ISAs less attractive to some savers but it’s still important to be able to ensure your nest egg is as tax-efficient in the longer term. We permit transfers in of previous years’ subscriptions to enable savers to maximise this benefit.”

Minimum investment in the new Limited Issue Online ISA is £1,000 and the account can be opened and operated online.

The maximum investment for the 2018/2019 tax year is £20,000, less any amount invested in a Stocks and Shares ISA in the same tax year.

 

[i] Source: CACI's CSDB, July 2018 Stock, Value. CACI is an independent company that provides financial services benchmarking data and covers 87% of the high street cash savings market.

Ends

Notes to Editors

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.

Key features

Limited Issue Online Access ISA (Issue 7)

  • 1.36% tax-freepa/AER* variable rate ISA
  • Minimum investment £1,000
  • Maximum investment is £20,000 in 2018/19, plus previous years’ ISA subscriptions
  • Interest is calculated and paid on maturity (1 December 2019)
  • Interest can be credited to the account, transferred to another building society/bank account or to another account held with the Society.
  • Withdrawals/transfers are permitted without notice or loss of interest
  • Can be opened and operated online

Leeds Building Society was named Best Building Society Savings Provider in the Moneyfacts Awards for 2018, having also won this title in 2016 and 2017.

Leeds Building Society operates throughout the UK and in Gibraltar and has assets of £19.5bn at 30 June (£17.3bn at 30 June 2017). The Society’s head office has been based in the centre of Leeds since 1886.