Younger saver demand prompts Leeds to launch new monthly income bond
A new fixed rate bond from Leeds Building Society will offer monthly income payments for short term savers.
Following feedback from members, the Society will be adding to its range of fixed rate bonds with a new one year product which pays 1.19%‡.
The monthly income bond will be available from Tuesday, 15 October, and can be opened in branch or online.
“We keep our savings range under constant review and listen to what customers tell us they need when we’re developing new products and their features,” said Matt Bartle, Leeds Building Society’s Director of Products.
“While longer term monthly income bonds tend to be popular with older savers, our new research found three-quarters of respondents under 40 also wanted monthly interest.
“This new short term bond complements our existing range of fixed rate savings deals, which offer monthly and annual interest bonds across a range of fixed terms.
“Savers are responding to the current economic and political uncertainty in different ways when choosing fixed rate bonds – this latest product means they can receive monthly interest without locking away their money long term.”
Notes to Editors
1 Year Monthly Income Bond
- 1.19% gross‡ p.a./1.20% AER† fixed until 30 November 2020
- Minimum investment £100
- Maximum investment is £1,000,000 (£2,000,000 for joint account holders)
- Monthly interest is paid on the last working day of the month
- Interest to be transferred to another account, either with the Society or elsewhere
- No withdrawals permitted until 30 November 2020
- Can be opened in branch, online or by post
Leeds Building Society was awarded a Gold Ribbon for customer experience from Fairer Finance for its savings accounts.
The Society operates throughout the UK and had assets of £20.7bn at 30 June 2019 (£19.4bn at 30 June 2018). The UK’s fifth-largest mutual is a Best Companies 2* employer and its head office is in the centre of Leeds, where it has been based since 1886.
‡ Gross means the rate of interest payable before the deduction of income tax at the rate specified by law.
† AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.