Leeds Inflation Buster Bond proves extremely popular

Leeds Building Society’s Inflation Buster Bond has proved extremely popular as customers look to secure a return that is guaranteed to beat inflation by 3.00%.

The return is linked to the Retail Price Index (RPI), which is the official measure of how much goods and services bought by an average UK household changes. Items measured by the RPI include food, clothing, education and child care, council tax, heating and lighting and mortgage interest payments. The last date for investment in the current issue is 24 August 2007.

The inflation rate is the percentage difference between RPI on two dates. For example, if the RPI in May is 206 and the following May is 215, then the percentage change in RPI and the inflation rate over the period is 4.3%. In this scenario, inflation is 4.3% and Leeds Building Society’s Inflation Buster Bond would pay a return of 7.3%.

Karen Wint, Head of Marketing & PR said, "This product provides excellent peace of mind with the inflation link, so no matter what happens, customers will receive a guaranteed real return.

"The bond is ideal for investors looking for a competitive return and is available on a minimum operating balance of only £1,000. If the Inflation Buster Bond had been available in earlier years, it would have out-performed the average UK savings rate by 1.57% in 2005 and 2.08% in 20061.

"Customers also have the flexibility to operate this bond at any of our 70 branches or by post. I believe this as an excellent addition to any investor’s portfolio."