Leeds Building Society introduces 5-year fixed rate ISA at 4.6%

The Leeds Building Society has launched a market leading five-year Fixed Rate ISA that pays 4.6 percent interest. More importantly, the high return is tax free and comes with the flexibility of unlimited access to at least 25 percent of the invested amount anytime without notice or penalty.

Almost anybody can open such an account as its minimum opening balance is only £1, Leeds said.

Leeds Building Society sales and marketing director Kim Rebecchi said, “We have seen very high ISA inflows this tax year and are very aware that tax-free savings are extremely important to our customers. That is why we have launched this ‘best buy’ and taken the decision to accept the additional £1,500 allowance for the over 50s.”

Rebicchi was referring to the additional £1,500 tax-free cash allowance, that Leeds is now accepting, which is available to anyone born on or before 5th April 1960. The new product also allows savers to transfer in all of their ISA subscriptions from the previous years, which could go as much as £43,200, plus any accrued interest.

“The opportunity to earn a fixed rate of 4.60 percent interest tax-free for five years, from as little as £1, is a market leading offer and provides outstanding value. Furthermore, our new 5 Year Fixed Rate ISA delivers flexibility and peace of mind with unlimited withdrawals of up to 25 percent of the capital allowed at any time, without notice or penalty,” Rebicchi added.

She explained that many consumers could be missing out on at least £1,609 of tax-free interest a year which as other ISAs available in the market are only paying less than 1% interest.

“In this current low interest rate environment, that is a significant difference. The fantastic rate of 4.60% is the equivalent of 7.67 percent for higher rate tax payers and 5.75 percent for basic rate tax payers, and over fifteen times and eleven times Bank Base Rate (BBR) respectively. There is no doubt that investors should review their existing savings and consider transferring their ISAs, to ensure they are maximising their tax free return,” she said.