A new fixed-rate savings product from Leeds Building Society (LBS) has been launched, with an annual equivalent rate (AER) of 5.5 per cent until January 31st 2009.
In what LBS has labelled a “unique guarantee”, savers are to have full access to the Two-Year Guaranteed Bond without penalty or notice if the Bank of England’s base rate reaches 5.5 per cent.
The bond has been introduced, according to Karen Wint, head of marketing at LBS, because many savers are “uncertain” about investing in a fixed-rate product that can give only limited access to their money.
“We have launched a branch-based product which offers savers the best of both worlds,” she commented.
“If there are no increases [in the base rate], they get an excellent return and if rates do rise, they can withdraw their funds if they want to reassess their investment options.”
Earlier this month, the Bank of England announced a rise of 0.25 per cent for the base rate, which now stands at five per cent.
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