Leeds postal base rate tracker bond pays base rate plus 2%

Leeds Building Society has unveiled a postal base rate tracker bond, which guarantees to pay Bank of England Base Rate (BBR) plus 2% for a year (currently 2.50%).

Furthermore, the account allows customers full instant access to their funds, without notice or penalty, at any time. There is a monthly interest version which tracks base rate plus 1.75%, for those who require an income (current rate 2.25%).

Kim Rebecchi, Leeds Building Society's Sales and Marketing Director said, "Inflation figures released this week showed that the Consumer Price Index (CPI) increased by 0.4% to 3.7% during December. This increase in CPI increases the likelihood of the Monetary Policy Committee increasing Base Rate.

"The financial markets are expecting the bank rate to increase from 0.5% to 1.25% by the end of the year, and the Confederation of British Industry (CBI) also expects base rate to hit 1.25% by the end of this year.

"Leeds Building Society's new postal base rate tracker bond provides customers the opportunity to take advantage of any increases, as the account is guaranteed to track the Base Rate plus 2% for a year. Customers also benefit from full instant access to the funds at any time, without notice or penalty.

"We have also launched a monthly version of this account, which tracks base rate plus 1.75% for a year. The minimum opening and operating balance, on both the annual and monthly accounts, is £1,000."

For more information, visit leedsbuildingsociety.co.uk.