Fixed rate bond with instant access if base rate rises

Leeds Building Society has launched a 2-Year Guaranteed Bond paying 5.50% fixed AER until 31 January 2009, with the unique guarantee of allowing full instant access to all the funds, without notice or penalty, if Bank of England Base Rate exceeds 5.50%.
Furthermore, the product also has a monthly interest option paying 5.38% AER for people who require an income.

Karen Wint, Head of Marketing said, "Fixed rate savings provide peace of mind and this is a major consideration for many customers. However, following the recent rise in Base Rate combined with some market commentators predicting a further rise early next year, some savers are uncertain about committing to a fixed rate product, as they usually have limited or no access.

"That is why we have launched a branch based product which offers savers the best of both worlds. They get both peace of mind, with a competitive fixed interest rate, but also full instant access to the funds if Base Rate exceeds 5.50%. Therefore, if there are no increases, they get an excellent return and if rates do rise, they can withdraw their funds if they want to reassess their investment options.

"This new branch based product also compliments our straightforward postal bond offering customers the best 2-year fixed rate available. The best buy guaranteed AER of 5.66% combined with emergency access to funds at any time, subject to the loss of 90 days interest, cannot be found anywhere else in the market. This product is ideal for those savers who do not anticipate needing their funds but would like the option just in case.

"So in any event, savers have an excellent choice of fixed rate products giving them an excellent guaranteed return, easy access and flexibility.”