New market leading 5-year fixed rate escalator ISA

Leeds Building Society has launched a market leading 5-year fixed rate ISA paying an escalating return up to 6.50% gross in year 5, with unlimited access to up to 50% of the initial amount invested at any time, without notice or penalty.

The account pays a tax free 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, "With most market experts predicting a further cut in Bank Base Rate this week, the ability to lock into a rising market leading guaranteed return, combined with instant access to some of the funds at any time will prove extremely popular.

"The minimum opening balance is only £1 and transfers of previous years' cash ISA subscriptions plus any interest earned are allowed.

"I believe this product offers excellent value and peace of mind. Customers know exactly what their tax free 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 is unrivalled in the market place. I expect it to be very popular."

For more information, visit leedsbuildingsociety.co.uk.