Back to February 2019

New 19 month ISA paying 1.75% launched by Leeds

Leeds Building Society is launching a new 19 month ISA paying a rate of 1.75%§ tax-free pa/AER*.

The Society’s new fixed rate ISA will be launched on Thursday, 7 February, as it continues to see strong demand from customers for its ISAs, despite a marked decline in the tax-free savings market following the implementation of the Personal Savings Allowance (PSA) in April 2016.

Research conducted by Leeds Building Society found that 53% of savers still intend to rely on ISAs to protect interest from the taxman.

Matt Bartle, Leeds Building Society’s Director of Products, said: “ISAs are now in their 20th year and have been a popular vehicle for saving throughout their existence. Our recent research indicates they remain a key part of people’s investment plans and demand for our ISA range remains strong.

“We believe ISAs are important to tax-efficient saving in the longer term and while the introduction of the PSA benefits a large number of savers, it could be altered at any time.

“Our new 19 month product provides consumers with the option of building their nest egg without tying their money up for two years.”

Minimum investment in the new 19 month ISA is £100 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.

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.

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. It was also awarded a Gold Ribbon for customer experience from Fairer Finance for its savings accounts.

Leeds Building Society operates throughout the UK and in Gibraltar and has assets of £19.5bn at 30 June 2018 (£17.3bn at 30 June 2017). The Society’s head office has been based in the centre of Leeds since 1886.


 

Key features

19 Month Fixed Rate ISA

  • 1.75% tax-freepa/AER* fixed rate ISA
  • Minimum investment £100
  • Maximum investment is £20,000 in 2018/19, plus previous years’ ISA subscriptions
  • Interest is calculated and paid on maturity (1 November 2020)
  • 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 not permitted
  • Can be opened and operated online