Leeds releases Escalator ISA
Leeds Building Society yesterday released a new individual savings account (ISA) paying interest at up to 2.75% above the current base rate.
The 5-Year Escalator ISA pays an average of 3.25% over its five year term.
Interest in the first year is paid at 2.75%, increasing to 3%, 3.25%, 3.5%, and 3.75% in subsequent years.
Savers can also opt for a monthly interest version of the ISA, paying 3.03% AER.
Leeds director of marketing, Kim Rebecchi, said: “It is very rare that investors can lock in to a rate that is so much higher than Bank Base Rate and if, as expected, Bank Base falls further next week, the relative rate of return will be even better.”
Analysts widely expect the Bank of England’s base rate to be cut by at least 0.5% next week.