Leeds Building Society has launched two new fixed-rate ISAs with higher interest rates to give customers’ savings an extra boost. Cash ISAs are a favourable route people take to invest, as it allows savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).
Fixed-rate ISAs are particularly popular with savers, as during a time of fluctuating rates and economic uncertainty, they allow account holders to lock in a certain interest rate for a year or more, depending on the account chosen.
The two new Leeds Building Society cash ISA accounts include a one-year fixed rate ISA paying an AER rate of 2.55 percent, and a two-year fixed rate ISA paying an AER rate of 2.9 percent.
The accounts have been made available from September 6 and can be opened with a minimum balance of £100.
Customers are also allowed to transfer existing ISAs from other providers, and interest on the accounts is calculated daily and paid annually.
Matt Bartle, director of products at Leeds Building Society said: “ISAs remain a popular way of building up a tax-efficient nest egg.
“I’m confident that both of these fixed rate products will prove to be very popular as they offer customers an attractive interest rate, coupled with the security of knowing what their savings pot will be worth at the end of the relevant term.”
Commenting on the new products, Rachel Springall, finance expert at Money Facts told Express.co.uk: “The one and two-year fixed rate ISAs from Leeds Building Society offer attractive rates which may well entice savers looking to take advantage of their tax-free ISA allowance.
“Both options permit transfers in from other Cash or Stocks and Shares ISAs and with interest rates rising, it’s always worthwhile for savers to review their existing ISA pots as these could be a better alternative.
“As the market continues to improve, savers may not want lock their cash away for the longer term but with these ISAs savers can access their cash subject to an interest penalty, which is nice benefit to have for peace of mind.”
The two-year fixed-rate ISA offers a fixed end date of November 3, 2024, and allows withdrawals however, the amount withdrawn will be subject to 150 days’ loss of interest.
Interest can be added to the account, transferred, or paid to another account with the Society, and the first percentage rate will be awarded from November 3, 2023.
The one-year fixed-rate ISA offers a fixed end date of October 31, 2023, and while withdrawals are also permitted, the amount withdrawn will be subject to 60 days’ loss of interest.
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