New two-year fixed-rate bond launched by Leeds

Leeds Building Society has launched a two-year fixed-rate postal bond paying an annual equivalent interest rate of 5.61 per cent.

There is also a monthly interest option on this product at 5.49 per cent, for customers who require interest payments as a form of income.

Investment levels ranging from £10,000 to £1 million, or £2 million for a joint account, are allowed in the bond, which also allows withdrawals or closure at any time subject to loss of 90 days’ interest.

Kim Rebecchi, general manager of sales at Leeds, described the offer as a “straightforward postal bond” which offers customers “the best two-year fixed-rate available”.

“Peace of mind is a major consideration for customers when they look at what to do with their savings and many require a savings account that provides a competitive return and access to funds easily, in case of an emergency,” Ms Rebecchi added.

“This product is ideal for those customers who do not anticipate needing their funds but would like the option just in case.”

Annual interest will be paid on January 31st 2007 and on maturity and monthly payments will be made on the last working day of the month.