Banking/Savings Section

The Leeds Building Society Offers A 2 Year Fixed Savings Bond At 5.6% Interest

October 2006

The Leeds Building Society is fast becoming one of the best banks at offering highly competitive fixed rate bonds.

Case in point is their latest offering –

• 2 year fixed rate postal bond expiring 31 October 2008
• Interest is 5.6% per annum
• Minimum investment is £10,000, maximum is £1million
• For people looking for an income the bond has a monthly interest option paying 5.35%
• Your money is locked up but the bond does have an exit clause at anytime within the two years but you’ll lose 90 days worth of interest

Summary

With interest rates currently at 4.75% any savings account paying above 5% is good so this bond paying 5.6% is pretty hard to beat. As ever though think closely when locking up your money for 1-3 years. If in doubt it’s normally better to go for a lower rate with instant access. But if you’ve got a large amount of savings then why not consider locking up 50% in foxed rate bonds and the rest in instant access accounts like ING Direct.

See Also

• The Leeds Building Society 2 Year Fixed Rate Postal Bond
• Top Tip! Manage All Your Online Bank, Savings & Credit Card Accounts From The One Webpage
• Find's list of Savings Accounts