Leeds launches 5-Year Fixed Rate Escalator Bond

Leeds Building Society has launched a 5-Year Fixed Rate Escalator Bond paying an escalating return up to 6.00% in year 5.

Furthermore, the account allows unlimited access of 25% of the initial amount invested at any time, without notice or penalty, and there is also a monthly interest option for those customers who require an income.

Kim Rebecchi, Sales and Marketing Director, said, "The ability to lock into a rising guaranteed return, combined with instant access to some of the funds at any time, is very attractive.

"I believe this product offers excellent value and peace of mind. Customers know exactly what their return will be as well as having the comfort of knowing that they have instant access, without notice or penalty, to 25% of their funds.

The account pays a guaranteed return of 3.25% in the first two years, 4.00% and 5.00% in years three and four rising to 6.00% in the final year, giving an AER of 4.30%. The monthly interest version pays an AER of 4.05% to customers who require an income.

Kim added, "This account allows customers to guarantee a rising return without having to rely on any changes to bank of England Base Rate. It is a strictly limited offer and I would urge customers to act quickly, as I expect this account to prove very popular."