Leeds guarantees interest rate on Bonds and ISAs

| January 8, 2009 | 0 Comments
Leeds guarantees interest rate on Bonds and ISAs

Leeds Building Society has reassured savers that its Inflation Buster Bond will continue to pay a guaranteed rate of interest, despite today’s 0.5% base rate cut by the Bank of England.

The building society’s Inflation Buster Bond and ISA guarantee an above-inflation exchange rate.

Leeds’s interest rate is calculated using the Retail Price Index (RPI), which measures the official consumer inflation rate, plus a fixed interest rate.

Currently, the Bond and ISA pay RPI plus 2%.

Kim Rebecchi, director of sales at Leeds Building Society, said the bond has so far proved popular.

She added that today’s base rate cut will put upward pressure on inflation, whilst reducing returns on more traditional types of investment.

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