Instant Access Rate increased to 5.00%

Leeds Building Society will increase the interest rate on its Direct Saver Plus account to 5.00% with effect from 1st December 2006.

The account allows penalty free access to funds without notice at any time provided the amount withdrawn is a minimum of £1,000 and the minimum balance of £5,000 is maintained.

The minutes of the Bank of England's Monetary Policy Committee (MPC) released yesterday showed that it thought there was still a need for a slowdown in the growth of take home pay. The committee noted that a busy period for pay deals was approaching against a backdrop of strong retail price inflation. After the minutes were released Global Insight economist Howard Archer commented "There is clearly a strong possibility that interest rates will rise to 5.25% in the first quarter."

Stuart Fearn, Product Development Manager at Leeds Building Society said, "Our Direct Saver Plus account is a very attractive proposition because the interest rate will automatically track any increase in the base rate. Even if there are surprise interest rate cuts in the future the account still offers customers the peace of mind of a guaranteed minimum rate of 4.75% until 31st July 2007."