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New 5-year Fixed Rate Escalator Bond

New 5-year Fixed Rate Escalator Bond

Category: Savings

Updated: 31/10/2008
First Published: 13/05/2008

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 It is now over 6 months old so the content may be out of date.

The new account, by the Leeds Building Society, allows unlimited access of 50% of the initial amount invested at any time, without notice or penalty, for the first three years and instant access in years four and five.

The account pays a return of 5.55% in the first year, 5.75%, 6.00%, 6.25% and 6.50% in the subsequent years, giving an AER of 6.00%. Furthermore, there is also a monthly interest version with an AER of 5.90% for customers who require an income.

Karen Wint, General Manger Marketing & Customer Services said, "The ability to lock into a rising guaranteed return, combined with instant access to some of the funds at any time, will prove extremely popular.

"I believe this product offers excellent value and peace of mind. Customers know exactly what their return will be as well as having the comfort of knowing that they have instant access, without notice or penalty, to 50% of their funds.

"Furthermore, this account is a high street passbook account available at any of our branches and I expect it to be very popular."

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 Any products featured may be withdrawn by their provider or changed at any time.