Leeds Building Society has launched a five-year Fixed Rate Escalator Bond offering investors a rate of six per cent if held to maturity.

The account also allows unlimited access to 25 per cent of the initial capital invested at any time, without notice or penalty.

The Fixed Rate Escalator Bond pays a return of 3.25 per cent in the first year and 3.50 per cent, 3.75 per cent, 4.00 per cent and 6.00 per cent in the subsequent years, giving an AER of 4.10 per cent. There is also a monthly interest version with an AER of 3.94 per cent for investors who require an income.

Kim Rebecchi, director of sales and marketing says, ‘A guaranteed increase in the interest rate for the next five years offers excellent value and peace of mind, especially when considering that a six per cent rate can be achieved in the final year. Investors know exactly what their return will be as well as having the comfort of knowing that they have instant access, without notice or penalty, to 25 per cent of their funds.

‘Furthermore, this account is a high street passbook account available at any of our branches, as well as online and by post.’

For more information, visit www.leedsbuildingsociety.co.uk, or call the savings hotline, on 08450 540 995.

Further reading:

Skipton FS offers savers a helping hand
FIxed rate bonds - to fix or not to fix?