With the Bank of England's MPC looking to reduce the base rate to an historic low (8th Jan) opportunities to maximise savings returns are being sought out by investors who had previously suffered with base rate reductions.
The Leeds Building Society Inflation Buster Bond and ISA guarantees a return that will beat inflation. They are paying the Retail Price Index (RPI) and also a fixed interest rate.
Director of Sales, Kim Rebecchi: "The take up of this product has been very successful and we have launched a number of consecutive issues since. We have also developed an extremely popular Inflation Buster ISA, which pays interest tax-free.
"The latest Inflation Buster Bond and ISA guarantee to pay RPI plus 2.00%. The RPI figure for November is 3.00% and, if RPI over the period is 3.00%, Leeds Building Society's Inflation Buster Bond and ISA would pay a return of 5.00%. This is the equivalent of 6.3% for basic rate tax payers and an impressive 8.4% for higher rate tax payers with the tax-free ISA, particularly in the current interest rate environment."
"If Bank Base Rate falls again on Thursday, there could be upward pressure on inflation and returns on more traditional types of investments will fall. It is clear to see why the Inflation Buster Bond and ISA is increasingly part of a saver's investment portfolio as they look for a fair rate of return guaranteed to be above inflation."
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.