In news that will make savers quite happy in an otherwise bleak economic landscape, Leeds Building Society has recently announced a new addition to its range of ISA savings products with a new fixed-rate account that offers an interest rate of three per cent for the first year.
The personal and business bank account provider is not only offering the three per cent interest ISA but is also allowing savers to access up to one quarter of any deposited funds without penalty or notice at any time.
Leeds Building Society director of marketing and sales Kim Rebecchi released a statement urging customers to take the new savings product into consideration if they have not yet exceeded the 2010-2011 tax year ISA cash allowance.
Adding that the ISA will only be available for a limited time, Ms Rebecchi stated that the fixed, one year short term product was designed in such a way to allow ISA customers to keep their options open in regards to their savings strategies. Additionally she commented that in order to avoid being disappointed, savers shoulod act now while the ISA is still available.
With interest being paid annually on the 5th of April, the ISA’s interest rate of three per cent remains fixed until the end of November of next year.
Many industry experts have spoken out recently that due to the high rate of inflation in the UK, many savings products seem counter-productive thanks to interest rates that fall far below the current Consumer Price Index of 3.1 per cent; with the new high interest rate ISA from Leeds Building Society, much of that gap is eliminated.
In related news, the building society announced recently that it would be re-opening its short term fixed-rate bond that carries a 2.50 per cent gross per annum guaranteed return.