Leeds Building Society has announced interest rate hikes across four savings and ISA accounts.
Britons can get higher rates on two short-term fixed rate cash ISAs as demand for this type of product continues to drive strong market activity.
The building society has relaunched its one and two year fixed rate ISAs, each at a rate of 4.40 percent gross pa/AER.
Additionally, they are adding a new market-leading five year fixed rate ISA at 4.25 percent gross pa/AER.
Leeds raised the rates as the biggest ISA season in at least a decade continues.
Catherine Wray, senior savings manager at Leeds Building Society said: “This year’s ISA season has been the strongest since at least 2014 and the market is still very active, almost two months since the new tax year began.
“Industry data shows total net flows of cash into ISAs this year so far are more than £21billion above the total ISA net flows for the whole of 2022, and in April net inflows were almost double compared to the same month in any year since 2014.
“We’ve seen savers switching from variable rate ISAs to short-term fixed rates, which has made the market very competitive for consumers as rates have climbed.
“ISAs started to become more popular again with savers after the UK entered a rising rate environment at the end of 2021, which affected the number of people who could benefit from the Personal Savings Allowance.
“In addition, the cost of living crisis may be prompting savers to be more proactive in managing their money, to make sure their cash is working as hard as possible.”
One-year Fixed Rate ISA (Issue 185)
Savers can benefit from a fixed rate of 4.40 percent gross per annum.
The minimum opening balance is £100 and the maximum deposit in the current tax year (2023/24) is £20,000.
Interest can be added to the account, transferred, or paid to another account with the Society.
The account can be opened online, by post or in branch, and operated by post or in branch.
Two-year Fixed Rate ISA (Issue 179)
Savers can benefit from a fixed rate of 4.40 percent gross per annum, with a minimum opening balance of £100.
The maximum deposit in the current tax year (2023/24) £20,000 and withdrawals are permitted subject to 150 days’ loss of interest.
The fixed end date of the account is June 30, 2025, and is interest paid annually commencing June 30, 2024, and on maturity on June 30, 2025.
Five-year Fixed Rate ISA (Issue 146)
Savers can get a fixed rate of 4.25 percent gross per annum. The minimum opening balance is £100 and the maximum deposit in the current tax year (2023/24) is £20,000.
The fixed end date of the account is July 2, 2028, with interest paid annually commencing on July 2, 2024, and on maturity on July 2, 2028.
For more information, Britons can visit the Leeds Building Society website.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.