Money News
Leeds Building Society has announced the launch of the latest version of its Inflation Buster ISA - the plan guaranteed to beat inflation by 2.50%. Put another way, if the RPI in January is 201.60 and the following January is 209.80, then the percentage change in RPI and the inflation rate over the period is 4.07%. In this scenario, inflation is 4.07% and the bond would pay a return of 6.57%.
Investors wishing to invest in the Inflation Buster ISA have the option to transfer their previous years' ISA subscriptions and some customers, who've paid in the maximum £3,000 allowance each year, may have built up a capital balance of £27,000 plus interest.
A maximum investment of £27,000 made on March 8th 2008 will have a tax free maturity value of £30,901.87 after two years, assuming that the rate of inflation is 4.07% over the term. This is made up of £209.14 for early investment and £3,692.73 from the RPI inflation rate.
Minimum investment is £1,000, maximum investment £3,000 plus the previous years' investments and interest earned.
Withdrawals or transfers made on or before April 30th 2008 will receive Bank of England Base Rate on the amount transferred or withdrawn.
Withdrawals or transfers made between May 1st 2008 (Strike Date) and April 30th 2009 will receive interest that is credited to the account on April 30th 2008, plus 2.50% on the amount transferred or withdrawn.
Finally, withdrawals or transfers made between May 1st 2009 and the maturity date will receive interest credited to the account on April 30th 2008 and April 30th 2009, plus 2.50% on the amount transferred or withdrawn. This account can be opened in branches or by post.
07 March 2008 © Moneyextra.com
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