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Leeds Building Society withdraws 4% bond

Joanna Faith
Written By:
Joanna Faith

Leeds Building Society is to withdraw its savings bond, paying 4% interest, from close of business today following high demand.

The bond, which requires savers to lock their money away for at least 10 years and a minimum investment of £10,000, was launched on 20 November.

It was specifically designed for customers looking to boost their monthly income from savings and pays eight times the current Bank of England Base Rate.

Kim Rebecchi, Leeds Building Society sales & marketing director commented, “The take up since launch has been significant, and we increased the amount originally anticipated for the product. This has now been fully allocated and, therefore, we are withdrawing the 10-Year Fixed Rate Monthly Income Bond.

“We looked at the savings market and, in this historically low interest rate environment where many customers are on fixed incomes, felt there was a need to generate an income from their savings.

“Clearly, we have seen that there is demand for the right longer-term savings product and we will look at the potential for developing other inflation beating products that provide the peace of mind associated with the capital guarantee.”