Leeds BS joins those raising interest rates on savings accounts
The mutual’s move follows the announcement last week that Nationwide Building Society planned to increase the interest rate it paid on its Start to Save 2 account to 5% in December.
Earlier this month, the Bank of England raised its lending rates by 0.75 percentage points to 3% as it tried to stem raging inflation amid warnings about a deepening recession. Lenders followed suit, raising what they charged to lend money, but now are also starting to increase the amount they pay to savers.
A sampling of the rate hikes planned by Leeds includes:
- Access Saver: Rates to increase from 1.15% to 1.45%
- Limited Issue Online Access Account: Rates to increase from 1.4% to 1.6%
- Limited Issue Online Access ISA: Rates to increase from 1.46% to 1.66%
- Dinosaver: Rates to increase from 2.90% to 3.65%
- Child Trust Fund Bonus Saver: Rates to increase from 3.50% to 4.25%
Matt Bartle, director of products at Leeds, was quoted as saying: “The recent increases in bank base rates is really good news for savers. As we approach the end of the year, it’s a great time for savers to review their savings accounts so that they know they are in the most appropriate, and best paying, account for their current needs.”
Related: Look for ways to maximise your rate without locking your funds away for years and years.