Leeds to withdraw 10 year bond at month end after strong performance
Leeds Building Society will withdraw its 10 year income bond at the end of July after seeing strong demand for the unique product.
The Society launched the 2.50% bond – above the current rate of inflation - in early June for savers seeking a monthly return, following member feedback and research of the market.
Matt Bartle, Leeds Building Society’s Director of Products, said the product had exceeded its funding allocation so would be withdrawn at close of business on Wednesday, 31 July.
“Some commentators questioned whether savers would want to tie up their money for 10 years but we always see strong demand for long term fixed rate products when we’re able to offer them,” said Matt.
“Members have told us they value a long term bond to generate regular income, alongside the products we offer to help them build their savings.
“Longer-term investments such as this tend to appeal to savers on fixed incomes, with the security of knowing all their capital will be returned at the end of the term.
“We work hard to offer competitive products across our range so we can meet the needs of different types of savers and keep our product range and rates under constant review to deliver on our purpose and help more people to save.”
The 10 year income bond has a minimum opening balance of £10,000 and the income generated will be paid to an account nominated by the saver. No withdrawals are permitted during the term.
Notes to Editors
10 Year No Access Income Bond (Issue 3)
- 2.50% gross p.a./2.53% AER fixed until 30 September 2029
- Minimum investment £10,000
- Maximum investment is £1,000,000 (£2,000,000 for joint account holders)
- Interest is calculated and paid on the last working day of the month
- Interest can be transferred to another account with the Society or elsewhere
- No withdrawals permitted until 1 October 2029
- Can be opened in branch or by phone
Leeds Building Society was 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.