Money News
Leeds Building Society has launched another version of its Inflation Buster ISA - the tax-free plan guaranteed to beat inflation by 2.50%.
Customers wishing to invest in the plan have the option to transfer their previous years' ISA subscriptions. Indeed some, who've paid in the maximum £3,000 allowance each year, may have built up a capital balance of £27,000 plus interest.
The return is linked to the Retail Price Index (RPI) - the inflation rate being the percentage difference between RPI on two dates. Hence, if the RPI in December is 210.90 and the following December it's 219.44, then the percentage change in RPI and the inflation rate over the period is 4.05%. In this scenario, inflation is 4.05% and the Inflation Buster Bond would pay a return of 6.55%.
Customers have access to all of their funds at any time and the account can be opened at any Leeds branch or by post.
15 February 2008 © Moneyextra.com
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