ISA from Leeds Building Society pays up to 5%

A 5 Year Fixed Rate Escalator ISA (Issue 4) from the Leeds Building Society pays up to 5% tax free per annum.

With predictions of a further cut in the Bank of England Base Rate this could be an attractive fixed rate ISA option for some.

The Escalator ISA pays 3% tax free in Year 1, from the date of opening to 2/1/2010.

The interest rate then rises 0.5% per year up to the final year, from 3/1/2013 to 2/1/2014, when the tax free interest rate will be 5%

There is no bonus payable on the account.

Up to 25% of the capital invested can be withdrawn before maturity (2 January 2014) without notice or loss of interest.

If you need to withdraw more than 25% the account will be subject to 90 days loss of interest or an equivalent amount on the amount withdrawn.

Over the 5 year fixed term the interest rate is 4% AER, where AER is the Annual Equivalent Rate and shows what the interest rate would be if interest was paid and added each year.

The minimum investment for this ISA is £1 and the maximum investment is £3,600, plus any previous years ISA savings either with the Leeds Building Society or transferred from another ISA provider.

Accounts can be opened at one of the Leeds Building Society branches or by post.