Leeds Building Society bond pays guaranteed rate of interest

www.moneynews.co.uk > Banking > Leeds Building Society bond pays guaranteed rate of interest

Leeds Building Society bond pays guaranteed rate of interest

Wed 7th Jan 2009

Leeds Building Society has announced that its Inflation Buster Bond will pay a guaranteed rate of interest, amid rumours that the Bank of England will cut the base rate of interest further on Thursday.

The Building Society said that the bond and its associated product, the Inflation Buster individual savings account (ISA) will continue to pay interest at the retail price index rate, plus a guaranteed two per cent.

Kim Rebecchi, director of sales at Leeds Building Society said that the bond had proved popular so far.

She added: "If Bank Base Rate falls again on Thursday, there could be upward pressure on inflation and returns on more traditional types of investments will fall."

In November last year the Bank of England cut the base rate by 1.5 per cent, following this with a further one per cent cut in December.

Click here for more banking news

Related News : Banking
	Young people 'should be taught to save'
	Families 'should plan for their children's future
	Switching bank accounts 'not as easy as banks portray'
	Brits facing finance difficulties 'should talk to their bank'
	Brits 'should utilise Isa allowances'
	Brits advised on investment options
	Children 'should be given bank accounts at 16'
	Falling inflation 'could help Brits save'
	Money worries 'are mounting for many'
	Contactless payment 'is secure and convenient'