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New five-year ISA bounds into charts

New five-year ISA bounds into charts

Category: Savings
Date: 07/10/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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.

The basics… 5 Year Fixed Rate ISA Issue 40 has a highly competitive rate of 2.50% until 1.12.19. Meanwhile, the one-year version (issue 63) has a rate of 1.40% until 30.11.15 and the two-year variant (issue 58) has a rate of 1.60% until 30.11.16.

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).

The finer details…All accounts can be managed in branch and by post with a minimum initial investment of just £100.

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.

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 Any products featured may be withdrawn by their provider or changed at any time.

 

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.

 
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