Leeds launches new options bond

The Leeds Building Society has announced that it is launching a new bond for customers that will split their money between saving and investment.

According to the lender, the options bond is the perfect product for customers who are looking to guarantee a rate of interest on a portion of their savings as well as benefiting from any gains in the stock market.

Some 40 per cent of the investment made will be placed in a Leeds deposit account while the remaining amount will be invested in Norwich Union’s portfolio.

The Norwich Union Portfolio offers a choice of investment funds, including the inflation protected guarantee on its with-profits fund. As well as guaranteeing capital, this unique feature tracks the retail price index, said Trevor Garside head of financial services at Leeds.

So, whatever happens to the market, customers will always receive a minimum return of their original investment plus inflation. With this in place, customers can benefit from any growth in the market and have the peace of mind provided by a minimum guaranteed return.

The minimum amount of money required for the investment in the Norwich Union portfolio is £5,000, with no additional investments permitted.

This investment can run for as long as particular customers wish, although there are exit penalties in the first five years.

The other half of the account allows a maximum investment of £250,000 and will pay interest monthly or annually.