Jun 20 2006
Savers are invited to take advantage of a new two-year fixed rate postal bond which guarantees 5.25 per cent on a low initial investment.
Leeds Building Society is offering investors the chance to sign up for the bond with a minimum opening balance of just £100.
Customers will have easy access to the funds as up to 50 per cent of the initial amount invested can be taken out without notice or penalty at any time. There is also a monthly interest option for people who would like to have a regular income.
"Fixed rate products are priced using on market or 'swap' rates and these rates are based on the market's expectation over a set period of time," explained Karen Wint from Leeds Building Society.
"Therefore, if the Bank of England suggests that interest rates may have to rise to bring the economy off the boil, market expectations will increase swap rates which will then allow building societies to offer high fixed rate savings products.
Baillie Gifford, one of the UK's largest investment trust managers, is also offering a children's savings plan with an low investment of just £30 a month, for more information click on our free brochures page.
