Inflation: Experts outline the impact on savings and investments
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
The limited edition 30 month Fixed Rate Bond will be available from today, Wednesday May 11. The savings account can be opened online, in-person at a Leeds Building Society branch or by post.
The limited edition account is a 30 month bond providing two percent interest until January 2025.
It has a minimum opening balance of £1,000 and a maximum of £1,000,000.
The maximum amount can be doubled for joint account holders.
The market leading two percent interest rate will be paid on the annual maturity date of the account.
Fixed rate accounts guarantee the set interest rate for the entirety of the account’s fixed time period.
However, it also means savers won’t be able to make withdrawals during this time.
The new bond comes alongside the building society’s other fixed rate ISAs which can be opened with a minimum of £100.
The maximum amount for ISAs is the current threshold of £20,000 but this includes all deposits made into every ISA a single person has.
Matt Bartle, director of products at Leeds Building Society, said: “We keep our savings range under constant review and listen to what our members tell us they need when developing new products.
“This limited edition bond, along with the improvements we have made to our fixed rate ISA range, ensures we have a range of products offering a higher rate to those savers able to put cash aside for a period of time.
“They also give those savers able to put their cash away for a fixed period the security of knowing what their nest egg will be worth at the end of their term.”
The one year fixed rate ISA is offering a 1.50 percent tax free interest rate until July 2023.
Savers can make withdrawals from this account but will be subjected to a 60 day loss of interest as a result.
The interest for this account is also paid annually, with transfers permitted from previous ISA funds.
The two year fixed rate ISA currently offers a fixed interest rate of 1.75 percent until June 2024.
Withdrawals and transfers are permitted during the two year fix.
However, this comes with a 150 day loss of interest as a consequence.
Fixed rate accounts usually have a higher interest rate than easy access savings options, and guarantees this rate until the account matures.
Some experts have noted Britons could expect savings accounts interest rates to rise slightly following the Bank of England’s base rate decision last week.
The Bank of England increased the base rate from 0.75 percent to one percent.
This has been the fourth rise since the end of 2021, with the BoE grappling to get a grip on rampant inflation.
Source: Read Full Article