Leeds re-launches savings bond

The Leeds Building Society has announced that it is re-launching its three-year savings bond on August 25th, offering full access in the third year.

Customers are offered a guaranteed fixed-rate of five per cent in years one and two, rising to six per cent in year three.

For non-taxpayers, this amounts to a compounded interest rate of 18.3 per cent, while basic rate taxpayers will receive a return of 14.64 over three years.

The account offers full instant access to funds after December 1st 2008, as well as penalty-free access to 25 per cent of the initial investment from the opening date of the product.

Stuart Fearn, product development manager at Leeds, said: “[This account] will appeal to people who want a guaranteed return over three years but it is also excellent for those who are interested in a two-year bond.”

The package will pay annual interest on December 1st every year until maturity and allow investment levels ranging from £5,000 to £1 million.