Leeds Building Society launches new market-leading fixed savings account paying 2.75%

Martin Lewis provides advice on savings accounts

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As savings accounts lose their appeal amid the rising cost of living, banks and building societies are offering more attractive rates to entice savers. Leeds Building Society’s new limited issue 30 month fixed ISA offers a fixed rate of 2.75 percent AER and, at the time of writing, is Moneyfacts’ top pick for the best fixed ISA rates. The account can be opened with a minimum balance of £1,000 and can be opened online, in the building society’s branches, or through the post. Once opened, savers have until July 31 to put in their deposit.

The maximum deposit for ISAs in the 2022-23 tax year is £20,000 and savers are able to transfer in previous ISA funds.

Interest on the account is calculated daily and is paid into the account annually from August 2, 2023 and on maturity.

Leeds Building Society states that if a saver deposits the £1,000 and does not add or take anything from the account then they will receive an interest payment of over £70 at the end of the fixed-term rate.

The interest saved in the ISA can also be added to the account, transferred or paid to another account and transfers into the account from previous ISA funds are allowed.

Savers are able to withdraw money from the account, however, they will face a 180 days loss of interest charge if they do.

If the account drops below the minimum of £1,000 the interest rate will drop to 0.05 percent.

Leeds Building Society says that its fixed rate products help “widen the choice” for savers.

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It also added that it offers a higher rate to savers who are able to put their money away for longer.

Matt Bartle, director of products at Leeds Building Society, said: “Fixed rate deals remain popular with our savings members as they offer a chance to look to the future and consider goals.

“Whether that’s saving for a holiday, home improvements or helping support a teenager go to university.”

Leeds Society has also relaunched its 30-month bond which now pays the increased rate of 2.75 percent for the next three years.

Leeds Building Society’s Bond does not allow withdrawals and has a maximum investment of £1million and £2million for joint account holders.

The Bond also allows savers to choose where they receive their interest. It can either be paid into the account or can be transferred to another both internally and externally.

Again, the Bond can be opened online, in branch, or in the post and the saver needs to have a minimum of £1,000 to do so.

To be eligible for the ISA or Bond a person will need to be over 16 years and a resident in the UK for tax purposes.

The two products are part of Leeds Building Society’s fixed-rate range that offers terms from one to five years.

Leeds Building Society announced that it would not change its interest rates until July 2022 after the Bank of England hiked them to a 13-year high of 1.25 percent last week.

From July 1, the interest rate on the majority of its savings accounts is to increase to 0.65 percent.

The Building Society also stated that there would be no change on its Standard Variable Rate or Buy to Let Variable Rate mortgages. However, those on a Bank of England Tracker mortgage will see their rates increase.

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