New Leeds Building Society guaranteed bonds introduced

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New Leeds Building Society guaranteed bonds introduced

Wed 29th Nov 2006

Leeds Building Society has launched a new two-year guaranteed bond that, unlike other bonds, allows instant access to funds.

The new product pays 5.5 per cent fixed AER until January 31st 2009, although should the Bank of England's base rate exceed this at any time, savers will be able to remove their funds and consider alternative investment options.

The Bank of England raised interest rates to five per cent last month and many analysts believe further rises could be on the way at the beginning of next year.

In order to provide customers with the best savings deal possible, the Leeds Building Society guaranteed bonds promise to allow instant access to funds, without notice or penalty, if the Bank of England base rate moves above 5.5 per cent, the rate at which the bonds are fixed.

Karen Wint, head of marketing at Leeds Building Society, said: "Fixed-rate savings provide peace of mind and this is a major consideration for many customers. However some savers are uncertain about committing to a fixed rate product, as they usually have limited or no access.

"That is why we have launched a branch based product which offers savers the best of both worlds. They get both peace of mind, with a competitive fixed interest rate, but also full instant access to the funds if base rate exceeds 5.5 per cent."

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