Mar 8 2007
A new individual savings account (Isa) range from Leeds Building Society (LBS) promises to offer consumers and parents "peace of mind".
With a guaranteed tax-free return rate, the Isas could make for a great means of saving for the young - who, without some form of nest-egg, could to struggle with ever-steeper living costs and property prices in the UK.
LBS' one-year Isa pays at a rate of 5.6 per cent. The two-year version returns 5.7 per cent and the three-year 5.85 per cent.
For each product, interest is paid annually on April 5th, commencing on April 5th 2008 with the minimum investment being £1.
Stuart Fearn, product development manager, said that the product range "offers a guaranteed high interest rate combined with access to funds".
He added: "All three versions are straightforward accounts with no short-term headline bonus rates, other catches or requirements to open linked accounts."
LBS also offers financial products such as credit cards and current accounts.
