Leeds launches new fixed-rate postal bond

Building society Leeds has launched a new fixed-rate postal bond which guarantees to pay 5.25 per cent and requires a minimum opening balance of £100.

This rate will be paid if customers choose to receive their interest payments on an annual basis, with a gross rate of five per cent being paid if interest is received monthly.

Interest payments can be made into the account, or alternatively into another account held with Leeds or another bank or building society.

A maximum investment level of £250,000 has been set on the offer for single accounts, or £500,000 for joint accounts, and additional inputs can be made while the issue of the product remains open.

Customers will also be allowed access to 50 per cent of the initial amount they invest, without notice or penalty at any time, although this is limited to one withdrawal of up to half of the initial capital, with no further extractions allowed.

Karen Wint, head of marketing and PR at Leeds, said: “We consistently try to ensure that customers receive a very competitive return and the peace of mind provided by allowing access to some of the funds, without notice or penalty.

“This product does exactly that…I am confident that many customers will want to lock in outstanding value combined with the peace of mind provided by access to funds.”

This new product from Leeds is available exclusively by post.