Back to March 2019

Leeds Building Society introduces 1.30% Double Access ISA

Leeds Building Society has launched a new variable ISA paying 1.30% tax-free pa/AER* that allows two withdrawals per calendar year, following feedback from members.

The Double Access ISA is available to open at the Society’s branches with a minimum investment of £5,000.

As the ISA’s 20th anniversary approached, concerns had been growing that the tax-free savings account was losing its appeal to consumers. However, national research§ commissioned by Leeds Building Society found 53% of savers still intend to make use of ISAs to protect their nest egg from the taxman.

The national survey also found most people (66%) chose an ISA because they knew their interest would be paid tax-free.

Matt Bartle, Director of Products at Leeds Building Society, said: “The ISA has been around for 20 years and its longevity is testament to the popularity of the product. Our research and experience in the market have backed this up, with 53% of savers keen to continue using ISAs and strong demand for our ISA products.

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

“We constantly review the way our members interact with our products and our research, as well as insight from members, has helped to shape the key features of this new product, including the minimum balance and the number of penalty-free withdrawals.

“Our new Double Access ISA complements our wider savings range and rewards members who want to save and don’t expect to need access, but value the reassurance that they can access their funds if they need to.”

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.

§A survey, which was undertaken in November 2018 sought the views of 729 people across the UK.

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 £19.4bn at 31 December 2018 (£18.5bn at 31 December 2017). The Society’s head office has been based in the centre of Leeds since 1886.

Key features

Double Access Variable Rate ISA

  • 1.30% tax-freepa/AER* variable rate ISA
  • Minimum investment £5,000
  • Maximum investment is £20,000 in 2018/19, plus previous years’ ISA subscriptions
  • Interest is calculated and paid on 31 March commencing 31 March 2020
  • Interest can be credited to the account, transferred to another building society/bank account or to another account held with the Society
  • Two withdrawals per year are permitted
  • If withdrawal restrictions broken, 30 days loss of interest
  • Can be opened in branch and operated online