Leeds launches new savings bond

A new savings account is currently on offer from the Leeds Building Society, offering a rate of 5.25 per cent.

Annual interest will be paid at this rate, while a monthly interest option is also available and will pay five per cent gross, up to and including September 1st 2009.

From this date the account will transfer to the terms of the lender’s tracker gold account, which is currently at 0.5 per cent below the Bank of England base rate.

A minimum investment level of £100 is required to open the account, which allows one withdrawal of up to 25 per cent of the initial amount invested without notice or penalty.

Stuart Fearn, product development manager at Leeds, said: “This is another product in our range that offers a guaranteed rate of return combined with the flexibility of access to some of the funds, without notice or penalty.

“This unique combination of guaranteed rate and access has proved popular with customers and we expect this account to prove popular with many investors.”

A maximum of £1 million can be invested in this account, which allows additional investments while its issue remains open.