Back to December 2019

Leeds launches new fixed rate bond with 25% access

Leeds Building Society is offering savers greater flexibility with the launch of a new fixed rate access bond.

The Society’s one year fixed rate bond pays 1.05% gross/AER and allows 25% access to the capital investment at any time without notice or penalty.

Data from CACI indicates people are increasingly turning to instant access savings products, with these making up 60% of the value of retail savings accounts opened in 2019 so far, following a steady decline over the last three years (61% in 2016, 59% in 2017 and 57% in 2018).

Fixed rate accounts have reduced in popularity in 2019 – to 37% of the value of retail savings accounts opened in 2019 – after three years of increased investment (36% in 2016, 39% in 2017 and 41% in 2018).

Matt Bartle, Director of Products at Leeds Building Society, said: “It appears economic and political uncertainty is leading people towards instant access products, but our experience indicates customers are still looking to make use of guaranteed fixed rates.

“Our new one year bond offers increased flexibility with a guaranteed fixed rate, combined with access to 25% of their savings pot should they need it.”

Ends

Notes to Editors

Key features

1 Year Fixed Rate Access Bond

  • 1.05% gross/AER fixed until 31 January 2021
  • 25% access without penalty or notice
  • No further withdrawals permitted
  • Minimum investment £100
  • Maximum investment is £1,000,000 (£2,000,000 for joint account holders)
  • Deposits can be made up to and including 31 January 2020
  • Interest paid on maturity on 31 January 2021
  • Interest credited to the account or transferred to another account, either with the Society or elsewhere
  • Can be opened in branch, online or by post

* CACI’s CSDB, new business value, data to September 2019

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.