Leeds Building Society increases rates on fixed rate savings accounts

Suren Thiru discusses the rise in interest rates

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Following the Bank of England’s base rate rise last week, a number of high street banks have tried to reflect this change with their savings accounts. Now, Leeds Building Society has announced new interest rates on its fixed rate ISA and fixed rate savings bonds.

The new rates come into effect for new accounts on November 11.

Leeds are offering a competitive rate which savers can earn up to 4.45 percent on their cash.

Accounts are available to open online, in branch or via the post.

The Fixed Rate ISA accounts can all be opened with as little as £100.

The minimum investment for the fixed rate bonds is also £100.

The ISA subscription limit for the 2022/23 tax year is £20,000.

List of changes:

  • 1 Year Fixed Rate ISA 3.75 percent (Tax-free/AER)
  • 2 Year Fixed Rate ISA 4.20 percent (Tax-free/AER)
  • 3 Year Fixed Rate ISA 4.35 percent (Tax-free/AER)
  • 5 Year Fixed Rate ISA 4.45 percent(Tax-free/AER)
  • 1 Year Fixed Rate Bond 3.75 percent (Gross p.a./AER)
  • 4 Year Fixed Rate Bond 4.40 percent(Gross p.a./AER)
  • 5 Year Fixed Rate Bond 4.45 percent (Gross p.a./AER)
  • 20 month Fixed Rate Bond – supporting Dementia Uk 4.00 percent (Gross p.a./AER)

Despite market turmoil, fixed-term accounts allow savers to lock in rates at the time of opening the account and mitigate the risk of facing any dips.

No withdrawals are permitted until the day after maturity for the accounts.

For example, if someone opted for the 5 Year Fixed Rate Bond the account will mature at midnight on January 3, 2028.

People can only access their money after January 3, 2028 and deposits can only be made up to December 31, 2022.

A fixed rate bond could be right for the individuals who like a fixed rate of interest and have a lump sum to deposit.

Assuming that £1,000 is deposited into the account at the time it is opened, without any withdrawals, savers will receive an interest payment of £243.20 at the end of the fixed term January 3, 2028.

This will give an overall account balance of £1,243.20.

The account is available to individuals aged 18 or over who are resident in the UK.

Leeds Building Society are not the only bank offering a competitive rate.

Secure Trust Bank has launched a new fixed bonds saving account this week paying 4.85 percent interest. The minimum opening amount is £1,000.

With record high inflation eating into people’s savings, there has never been a more important time for Britons to make sure they are getting a good rate.

Commenting on the deal, Rachel Springall, Finance Expert at Moneyfacts.co.uk, said: “Secure Trust Bank has launched new fixed bonds this week, including a two-year option.

“Paying a rate of 4.85 percent, the deal takes a more prominent place in the market against its peers and can be opened from £1,000 and further additions can be made within the first 30 days of opening the account.

“Savers looking to earn an attractive rate over the next two years may then find this an appealing option. The account secures an Excellent Moneyfacts product rating.”

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