Leeds launches market leading fix bond

Leeds Building Society has launched a brand new market-leading short-term fixed-rate postal bond offering very competitive savings rates.

The bond pays a guaranteed return of 2.50 per cent gross per annum or 2.52 per cent AER and offers full access to the funds at any time without any penalties or charges.

Leeds hope that the combination of a guaranteed fixed return as high as 2.50 per cent, which is five time the base rate, and the flexibility of full access will make the new bond a very popular product with savers.

Kim Rebecchi, Leeds Building Society sales and marketing director, said: "This product offers the best of both worlds. Savers know exactly what they are getting and, with the market predicting no increase in rates for some time, the Fixed Rate Postal Bond provides an ideal home for their savings, delivering a very high rate of return."

The fact that customers can access the funds at any time allows them to look for better deals should a base rate change result in a rise in savings interest rates.

Northern Rock recently issued a series of fixed-rate bonds, which do not allow withdrawals during the term, offering savings rates from three per cent over one-year up to 4.15 per cent over five years.

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2010-09-21 11:54:31 © Moneyextra.com