New Base Rate Tracker Bond Savings Account From Leeds

Leeds Building Society has introduced a new postal base rate tracker bond savings account, providing customers with the opportunity to take advantage of expected increases in the Bank of England base rate.

The new postal base rate tracker bond guarantees to pay the Bank of England base rate plus 2% for a year. Currently this means an interest rate of 2.5%.

There is a monthly interest version which tracks base rate plus 1.75%, for those who require an income (current rate 2.25%).

The minimum investment for this savings account is £1,000 and the maximum £1,000,000 (£2,000,000 for joint accounts).

The account allows customers full instant access to their funds, without notice or penalty, at any time.

Kim Rebecchi, Leeds Building Society’s Sales and Marketing Director said, “Inflation figures released this week showed that the Consumer Price Index (CPI) increased by 0.4% to 3.7% during December. This increase in CPI increases the likelihood of the Monetary Policy Committee increasing Base Rate.

The financial markets are expecting the bank rate to increase from 0.5% 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.

Leeds Building Society’s new postal base rate tracker bond provides customers the opportunity to take advantage of any increases, as the account is guaranteed to track the Base Rate plus 2% for a year.”

The tracker bond can be opened by post or online, for more information see the Leeds website.