You are here: Home - Investing -

Leeds launches income bond paying 4%

Written by:
Leeds Building Society has launched a long-term fixed rate monthly income bond paying a guaranteed return of 4% for 10 years.

The Bond has a minimum operating balance of £10,000 per account and withdrawals are not permitted during the term.

The Bond is available to open in branch and by post from Wednesday 20th November.

Andrew Hagger of said: “Understandably many people will feel that 10 years is too long not to have access to their capital, but for those with the sole intention of getting the best monthly income they can from their nest egg, the 4% rate will look very tempting.”

This is the first time a 4% fixed rate savings deal (excluding peer to peer) has been available since November 2012.

Hagger added: “Even the best buy 7 year fix currently offers just 3.52% (Secure Trust Bank).

“It’s difficult trying to second guess whether this will turn out to be a wise savings choice, particularly as experts and economists have repeatedly got it wrong when predicting potential base rate rises over the last three or four years.

“I’m sure many people looked at the 10 year fixed rate savings bond from Birmingham Midshires in the summer of 2008 and thought it was too much of a risk too.

“But in hindsight the rate of 6% on offer at the time would have turned out to have been a very shrewd move.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week