Leeds Building Society extends ISA range

With only a fortnight to go before anyone born on or before 5th April 1960 can top up their ISA with an additional £1,500 tax free, Leeds Building Society has extended all of its very popular fixed rate ISAs, including its market leading 5-year paying 4.60%.

The decision follows the announcement back in July by the UK's 6th largest building society that it would accept the additional allowance into all new and any existing ISAs including fixed rate products, where the customer has already invested all or part of their 2009/2010 ISA allowance.

Furthermore, Leeds Building Society is also accepting transfers from other providers.

Kim Rebecchi, Director of Sales and Marketing said, "The Financial Services Authority (FSA) stated it was up to ISA providers to decide if they will allow eligible customers (those born on or before 5 April 1960) to subscribe up to the higher ISA limits from 6 October. However, we have seen very high ISA inflows this year and are very aware that tax-free savings are extremely important to our customers.

"That is why we have taken the decision to accept this additional allowance and to extend our very competitive range, which has proved extremely popular. In addition, all of our ISAs are available from only £1, allow customers to transfer their previous ISA subscriptions plus interest and permit unlimited access to 25% of the amount invested at any time, without notice or penalty."

Leeds Building Society has ISAs paying up to a market leading 4.60%, which is the equivalent of 7.67% for higher rate tax payers and 5.75% for basic rate tax payers, and over fifteen times and eleven times Bank Base Rate (BBR) respectively.

Kim added "Some ISA customers, who have invested the maximum possible, could have £43,200 invested in an ISA, with a further £1,500 available from October, plus accrued interest. With many ISAs in the market paying less than 1%, investors could be missing out on at least £1,609 of tax-free interest which, in this current low interest rate environment, is a significant difference.

"There is no doubt that investors should review their existing savings and consider transferring their ISAs, to ensure they are maximising their tax free return."

For more information, visit leedsbuildingsociety.co.uk.