Leeds Building Society ISA 'punches above base rate weight'

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Leeds Building Society ISA 'punches above base rate weight'

Wed 25th Feb 2009

Leeds Building Society has announced that one of the individual savings accounts (ISAs) it offers pays interest at 2.75 per cent higher than the current base rate.

The ISA pays interest tax-free at a rate of 3.25 per cent over the course of its five-year term, with customers receiving 2.75 per cent in their first year, increasing to three per cent, 3.25 per cent, 3.5 per cent and 3.75 per cent in the subsequent years.

Kim Rebecchi, director of sales and marketing for Leeds Building Society, said that the account also includes a monthly interest payment option, which pays interest at 3.03 per cent.

She added: "However you look at it, this is a fantastic deal. It is very rare that investors can lock in to a rate that is so much higher than the bank base rate and if, as expected, the bank base rate falls further next week, the relative rate of return will be even better."

The Bank of England cut interest rates to one per cent earlier this month.

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