Leeds BS has entered the variable rate bond market with an eye catching new postal account.
The Postal Base Rate Tracker Bond is a variable rate postal operated bond maturing 31.1.12 with a minimum investment of £1K paying 2.50% on maturity (2.25% monthly).
The rate is guaranteed to be 2.00% (1.75% for monthly option) above base rate for the term of the bond.
The account allows unlimited penalty free access, and additions are permitted whilst the issue remains open.
At 2.50%, it sits just below the market leading one year variable rate bond but with unlimited penalty free access it is far more flexible. It also compares very favourably with no notice non internet accounts so should appeal to that market as well.
The monthly option may appeal to those looking to supplement their income but requiring flexibility.
The rate guarantee also offers investors some comfort as talk of base rate rises intensifies.
Four out of five Moneyfacts stars have been awarded.
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