Leeds helps savers maximise tax-free returns

Leeds Building Society has announced that it will accept the additional £1,500 tax free cash allowance, announced by the Chancellor, Alistair Darling, in his budget, which is available to anyone born on or before 6 April 1960.

The Society has also confirmed that the additional funds will be accepted into any Leeds Building Society ISA, including fixed rate products, where the customer has already invested all or part of their 2009/2010 ISA allowance.

Furthermore, Leeds Building Society will also be accepting transfers from other providers. This will be particularly attractive to those customers who have their tax free savings with providers that have announced they will not accept the additional £1,500.

Kim Rebecchi, Director of Sales and Marketing said, "The Financial Services Authority (FSA) has confirmed that it is a commercial decision for ISA providers to decide if they will allow eligible customers (those born on or before 5 April 1960) to subscribe up to the higher ISA limits from 6 October.

"However, we have seen record ISA inflows this year and are very aware that tax-free savings are extremely important to our customers and that is why we have taken the decision to accept this additional allowance.

"Many of our very competitive ISAs also allow customers to transfer their previous ISA subscriptions plus interest. Therefore, we expect many ISA customers, who currently have their tax-free savings with other providers who are not accepting this additional allowance, to transfer to the Society."

Leeds Building Society has ISAs paying up to 4.05%, which is the equivalent of 6.75% for higher rate tax payers and 5.06% for basic rate tax payers, and over thirteen times and ten times Bank Base Rate (BBR) respectively. Many of the products also allow unlimited access to 25% of the amount invested at any time, without notice or penalty, and a minimum opening balance of only £1.

Kim added "Some ISA customers, who have invested the maximum possible, could have £43,200 invested in an ISA plus accrued interest. With many ISAs in the market paying less than 2%, investors could be missing out on at least £885 of tax free interest which, in this current low interest rate environment, is a significant difference.

"There is no doubt that investors should review their existing savings and consider transferring their ISAs, to ensure they are maximising their tax free return."