Leeds Building Society guarantees to pay RPI plus 2%

As the Bank of England's Monetary Policy Committee (MPC) looks set to reduce Bank Base Rate to a historic low on Thursday (8th January), many investors, who have already suffered from the 3% drop in Base Rate since October last year, will be looking for opportunities to maximise the return on their savings.

Leeds Building Society's Inflation Buster Bond and ISA offer peace of mind and guarantee to deliver a return to beat inflation. They pay the Retail Price Index (RPI), which is the official measure of how much goods and services bought by an average UK household changes, plus a fixed interest rate.

Kim Rebecchi, Director of Sales at Leeds Building Society said, "The take up of this product has been very successful and we have launched a number of consecutive issues since. We have also developed an extremely popular Inflation Buster ISA, which pays interest tax-free.

"The latest Inflation Buster Bond and ISA guarantee to pay RPI plus 2.00%. The RPI figure for November is 3.00% and, if RPI over the period is 3.00%, Leeds Building Society's Inflation Buster Bond and ISA would pay a return of 5.00%. This is the equivalent of 6.3% for basic rate tax payers and an impressive 8.4% for higher rate tax payers with the tax-free ISA, particularly in the current interest rate environment."

Kim added, "If Bank Base Rate falls again on Thursday, there could be upward pressure on inflation and returns on more traditional types of investments will fall. It is clear to see why the Inflation Buster Bond and ISA is increasingly part of a saver's investment portfolio as they look for a fair rate of return guaranteed to be above inflation."