Leeds Building Society has reviewed its fixed rate offerings and introduced a new five-year ISA, which boasts a competitive top 10 rate for its sector.
As part of the review, Leeds BS has also updated its fixed rate bonds: 1 Year Fixed Rate Bond now pays 1.40% (until 30.11.15) and its two-year equivalent has a new rate of 1.60% (until 30.11.16).
Transfers in of cash ISAs are permitted for the ISAs, although transfers of stocks & shares ISAs are not. Further additions can also be made while the issues remain open.
Withdrawals of up to 25% of the original investment can be made from any of the ISAs without restriction, but further withdrawals incur a penalty: a 60-day loss of interest will be triggered in the one-year ISA and a 150-day interest penalty will apply with the two-year variant, while making extra withdrawals from the five-year ISA will incur a hefty 365-day loss of interest. These penalties also apply to transfers out of the accounts.
Withdrawals can be made from the fixed bonds, too, although after the first 25% of the initial investment has been taken out, no more withdrawals can be made until the bonds mature. Further additions can be made while the issues are open.
Why we like them…
The five-year ISA has been blessed with a very competitive rate, which sees it securely placed among the top 10 for its sector. The option to withdraw up to 25% of the initial investment penalty-free grants this account a welcome amount of flexibility, which is sure to appeal to investors concerned about locking their money away for the full term.
Four Moneyfacts Stars have been awarded.
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