Outstanding 7.31% return for Inflation Buster savers

Investors in Leeds Building Society's first issue of its Inflation Buster Bond are celebrating an annual return of 7.31% following the first anniversary of this innovative savings account that is guaranteed to beat inflation.

The Inflation Buster Bond pays the Retail Price Index (RPI), which is the official measure of how much goods and services bought by an average UK household changes, plus a fixed interest rate.

Peter Hill, Operations Director at Leeds Building Society said, "The take up on our first Inflation Buster Bond was very successful and we have launched a number of consecutive issues since. We have also developed an extremely popular Inflation Buster ISA, which pays interest tax-free.

"The current Inflation Buster Bond and ISA guarantee to pay RPI plus 2.25%. The latest RPI figure of 5.00% for July is up from 4.60% in June. If RPI over the period is 5.00%, Leeds Building Society's Inflation Buster Bond and ISA would pay a return of 7.25%.

"This is the equivalent of 9.06% for basic rate tax payers and an impressive 12.08% for higher rate tax payers with the tax-free Inflation Buster ISA. In addition, investors who have already paid in the maximum £3,600 in this tax year can still invest in the tax-free version. This is because our Inflation Buster ISA has the option to transfer previous years ISA subscriptions and some customers, who have paid in the maximum allowance each year, may have built up a capital balance of £39,600 plus interest."
The Bank of England Inflation Report stated last month that ‘Higher energy, food and import prices push inflation substantially higher over the next few months.' The report went on to say ‘The main risks to inflation have both increased since the May Report. Overall, the balance of risks to inflation is judged to be on the upside.'

Peter added, "It is clear to see why the Inflation Buster Bond and ISA is increasingly part of a savers investment portfolio. There is also the opportunity to put further savings into the Inflation Buster Bond, which has a maximum investment of £1,000,000 and £2,000,000 for joint accounts."

For more information, customers can call into their local branch, visit the website at leedsbuildingsociety.co.uk