Leeds launches “market-leading” fixed-rate bond

The Leeds Building Society has introduced a new two-year fixed-rate postal bond, with an annual equivalent rate of 5.66 per cent until January 31st 2009.

For people requiring an income, there is also a monthly interest option on this product paying 5.54 per cent interest.

Investment levels ranging from £10,000 to £1 million are allowed in this package, which permits withdrawals or closure, subject to the loss of 90 days’ interest.

Karen Wint, head of marketing at Leeds, claimed that this product offers the best two-year fixed-rate on the market for savers.

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

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

Annual interest payments on this account will commence on January 31st and can be credited into the product, whereas monthly payments will be made on the last working day of the month and must be transferred to a different account.