Leeds launches base rate tracker ISA

Leeds Building Society has launched a base rate tracker ISA, which guarantees to pay Bank of England Base Rate plus 2% for 2 years (currently 2.50%).

This account offers a highly competitive tax free return for customers who have still to use their 2010/ 2011 ISA allowance. There is also the facility for customers who have already subscribed to an ISA in the current tax year to transfer in these funds, and all previous years ISA subscriptions from other providers, in full

Kim Rebecchi, Leeds Building Society's Sales and Marketing Director said, "This account provides customers with the opportunity to take advantage of any increases in Bank of England base rate, with the guarantee to track the base rate plus 2% for two years.

"The financial markets are expecting the bank rate to increase by 0.75% 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. With base rate expected to rise, the rate guarantee for the full term offers comfort to investors.

"Customers receive a highly competitive return for their tax free savings, both for the £5,100 subscription in the 2010/ 2011 tax year and for transfers in of previous years ISA subscriptions. If customers have paid into an ISA every year since inception they could have a balance as high as £48,300.

"In addition, the minimum balance on this account is only £1, and it can be opened at any of our 65 branches throughout the UK, by post or online."