Leeds Building Society offers competitive interest rate on cash ISA
With the end of the tax year fast approaching, savers are being urged to cash in on this year’s ISA allowance before it disappears, so many will be on the lookout for the most lucrative accounts available. Leeds Building Society offers a competitive four percent Annual Equivalent Rate (AER) on its fixed term cash ISA.
While there are currently no savings accounts that beat inflation, fixed-term cash ISAs are known for offering higher returns than other savings accounts.
Cash ISAs are also a popular choice for many, as these accounts come with additional perks and benefits, such as providing the opportunity for savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).
Fixed-rate ISAs are particularly popular with savers, as they allow people to lock in a specified interest rate for a year or more depending on the account chosen – adding a layer of certainty to saving.
Leeds Building Society’s Two Year Fixed Rate Cash ISA (Issue 174) is offering a competitive AER of four percent. The account can be opened with a deposit of £100 to savers over the age of 16.
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Interest is calculated daily and paid annually on March 31, and on maturity, which falls on March 31, 2025.
Interest can be credited to the account or transferred to another bank account, or to another account held with the Leeds Building Society.
While some accounts offer some level of flexibility, savers investing in this deal will not be allowed to access their money without a penalty.
Early withdrawals will be subject to 150 days’ loss of interest on an amount equivalent to what has been withdrawn or transferred.
This means people might get back less than they originally deposited, and if the balance falls below £100, the rate of interest will drop to 0.05 percent.
But while this account is offering an appealing deal, it isn’t currently topping the leaderboard of two-year cash ISAs.
Virgin Money takes the top spot offering an AER of 4.11 percent on its Two Year Fixed Rate Cash E-ISA (Issue 556).
The account can be opened with a minimum deposit of £1 and interest can be paid either monthly or annually. Annual interest is paid on August 5, while monthly interest is paid on the last day of the month.
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The account requires a minimum deposit of £1,000 to open and interest is paid on the anniversary of doing so.
Withdrawals are also permitted, however, the account will be subject to a reduction in profit of 180 days.
Close Brothers Savings’ Two Year Fixed Rate Cash ISA falls just behind, offering an AER of 4.05 percent.
This account requires a minimum investment of £10,000 to open and interest is calculated daily and paid on maturity.
Savers must be aged 18 years or over and a UK tax resident and withdrawals are not permitted without a penalty charge.
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