Leeds Building Society launch penalty free instant access fixed rate bond

Leeds Building Society has launched a 1-Year postal bond paying 5.50% AER fixed until 31 January 2008, with full instant access to all the funds, without notice or penalty, at any time.

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, "Where else can you get a high up-front guaranteed return for 12 months and the flexibility to withdraw at any time, without notice or penalty?

"Birmingham Midshires, which guarantees to beat ING’s Direct Savings Account, is currently paying 5.25%, compared to ING’s 4.75%. However, the guarantee is only to be 0.25% above ING and the rate is variable, so Birmingham Midshires could cut their rate at any time if ING stays at 4.75%.

"Therefore, the rate from Leeds Building Society is currently 0.75% higher than ING and 0.25% above Birmingham Midshires. It is the only account that provides a guaranteed market leading return combined with easy access, as well as a monthly interest option and I would suggest customers act quickly to avoid disappointment."