Leeds launch 5-year fixed rate escalator bond

Leeds Building Society has launched a 5-year fixed rate Escalator Bond paying an escalating return up to 6.50% in year 5.

The account allows unlimited access of 50% of the initial amount invested at any time, without notice or penalty, for the first three years and instant access in years four and five.

The account pays a return of 5.55% in the first year, 5.75%, 6.00%, 6.25% and 6.50% in the subsequent years, giving an AER of 6.00%. Furthermore, there is also a monthly interest version with an AER of 5.90% for customers who require an income.

Karen Wint, General Manger Marketing & Customer Services said, "The ability to lock into a rising guaranteed return, combined with instant access to some of the funds at any time, will prove extremely popular.

"I believe this product offers excellent value and peace of mind. Customers know exactly what their return will be as well as having the comfort of knowing that they have instant access, without notice or penalty, to 50% of their funds.

"Furthermore, this account is a high street passbook account available at any of our branches and I expect it to be very popular."

For more information, visit leedsbuildingsociety.co.uk.