Leeds launches new fixed-rate income bond

A new five-year fixed-rate income bond has been launched by the Leeds Building Society, guaranteeing to pay 5.2 per cent gross per year until July 31st 2011.

The account requires a minimum opening balance of £1,000 and allows customers access to up to half of the initial amount they invest without notice or penalty at any time.

A single withdrawal of up to 50 per cent is allowed prior to the date of maturity on this offer and no further withdrawals will be allowed.

A maximum investment of £250,000 is permitted in this new product, which will pay interest on a monthly basis on the last day of every month. Additional inputs to the initial amount placed in the account are allowed as long as its public issue remains open.

“The combination of an attractive rate providing a monthly income combined with access will appeal to customers looking to lock in value,” said Karen Wint, head of marketing and PR at Leeds.

“Interest will be paid on the last working day of each month and can be credited to another account with the society or another provider.”

Details were also provided of the Leeds flexible freedom account, which is open to pension investments, has a minimum operating balance of £500, a return rate of 4.5 per cent gross per year and allows unlimited withdrawals.