Leeds launches income bond paying 4%

Leeds Building Society has launched a long-term fixed rate monthly income bond paying a guaranteed return of 4%, which is eight times Bank of England Base Rate (BBR), for 10 years.

The bond, from the UK’s 5th largest building society, is specifically designed for those customers who are looking to boost their monthly income from savings.
 
Kim Rebecchi, Leeds Building Society Sales & Marketing Director commented, “We have looked at the savings market and, in this historically low interest rate environment where many customers are on fixed incomes, there is a need to generate an income from their savings. That is why we have launched this unique 10-Year Fixed Rate Monthly Income Bond that pays 4%. At the end of the product term, customers will have benefited from an income totalling 40% and still have all their capital.
 
“Our research also showed that the retail savings market for a term of 5-years plus shows that there is £37bn on deposit. Therefore, for the right product, customers are prepared to invest for a longer period.”
 
The 10-Year Fixed Rate Monthly Income Bond has a minimum operating balance £10,000 per account and withdrawals are not permitted during the term.
 
Kim added, “This product, which offers eight times BBR and almost double the current rate of inflation, will appeal to those customers looking for a fixed monthly income over the term and the peace of mind associated with the capital guarantee.”
 
For more information, visit leedsbuildingsociety.co.uk.