Leeds launches 3.5% fixed-rate ISA

Leeds Building Society has launched two new fixed-rate ISAs paying interest at up to 3.5%.

The new accounts include a three-year fixed-rate ISA, paying interest at 3.5%, and a two year product paying 3% interest.

Both accounts can be opened with a minimum deposit of just £1, and both accept transfers from previous ISA subscriptions.

Savers can withdraw up to 25% of their initial deposit, penalty free, at any time.

Kim Rebecchi, Leeds Building Society’s director of sales and marketing, pointed out that the interest rates offered on the ISAs are up to seven times the Bank of England’s base rate.

He added that the accounts are ideal for two types of investor.

“They will be suitable for those investors who are wary of tying up their money for long periods, and also those who don’t want to have very short-term accounts within their investment portfolio,” he said.

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