Leeds ISA pays 3.50% above Bank Base

Leeds Building Society's 5-Year Escalator ISA pays up to 5% and with market commentators predicting another Bank Base Rate cut of at least 0.50% next week, this tax free product could become even more attractive.

The ISA pays a tax-free AER of 4.00% over the period and customers will receive 3.0% in the first year, 3.50%, 4.00%, 4.50% and 5.00% in the subsequent years, with the monthly interest version giving an AER of 3.81%.

Kim Rebecchi, Director of Sales and Marketing said, "However you look at it, this is a fantastic deal. It is very rare that investors can lock in to a rate that is so much higher than Bank Base Rate and if, as expected, Bank Base falls further next week, the relative rate of return will be even better.

"Furthermore, at a time when many savers have seen their income slashed, there is a monthly income option paying 3.81% AER. Both the annual and monthly income accounts also allow an unlimited number of withdrawals of up to 25% of the initial amount invested, without notice or penalty, providing additional flexibility and peace of mind."

"There is no doubt that this type of product is attractive and I would urge customers to act quickly to avoid disappointment."

For more information, visit leedsbuildingsociety.co.uk