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  Escalator Bond
Home > Savings > Our Savings Range > Escalator Bond

Escalator Bond (Issue 20)

If you want to save – and also want to enjoy the reassurance of guaranteed returns – a Leeds Building Society Escalator Bond may be just what you’re looking for. It’s a refreshingly simple savings account with great rates and efficient service from Leeds Building Society.

Key features at a glance

  • Minimum investment: £5,000.
  • Maximum investment: £1,000,000 (£2,000,000 for joint accounts).
  • When is interest paid? Annual interest is calculated daily and is paid annually on 1 July (commencing 1 July 2009) and on maturity (1 July 2010). Monthly interest is paid on the last working day of each month.
  • How is interest paid? Annual interest can be added to the account or transferred either to another building society/bank account or to another account held with the Society.
    Monthly interest must be transferred either to another building society/bank account or to another account held with the Society.
  • Withdrawals: You can make one withdrawal of up to 25% of your initial capital investment without notice or loss of interest until 1 July 2009. Full instant penalty free access from 2 July 2009 until maturity (1 July 2010).

How much interest will I earn?

Annual Investment Gross Rate§ p.a/AER† Overall interest rate applicable to the account
From account open date up to 01/07/2009 6.00

6.50%
Gross Rate§/AER†
From 02/07/09 up to 01/07/2010 7.00
Monthly Investment Gross Rate§ p.a AER† Overall interest rate applicable to the account
From account open date up to 01/07/2009 5.75 5.90 6.43%
Gross Rate§/AER†
From 02/07/09 up to 01/07/2010 6.75 6.96
Interest rates effective from 17 July 2008
  • When will my investment mature?
     
    The Escalator Bond will mature at close of business on 1 July 2010. On the day after maturity (2 July 2010), the Society will transfer your investment (including interest) to a maturity product. Full details, including terms and conditions, will be provided before maturity.
Apply Online

 

Important notes

§ Gross means the rate payable before the deduction of income tax .

† AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.

Investments in this account will represent shares in the Society and are subject to the Rules of the Society. Member of the Building Societies’ Association. Leeds Building Society is a participant in the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. Payments under the Scheme are limited to a maximum payment of £50,000, that is 100% of the first £50,000 of an investor’s total shares and/or deposits in a society. Most investors are covered, including individuals and small firms. A small number of categories of shares and deposits are not covered, for example deferred shares – permanent interest bearing shares. Although most shares are denominated in sterling, all other currencies are covered. Further details are available on request from the Society. Leeds Building Society is authorised and regulated by the Financial Services Authority.

Leeds Building Society subscribes to the Banking Code which sets out standards of good banking practice for banks and building societies. Details of the Code are available at www.bankingcode.co.uk or in the leaflet "The Banking Code" published by the BBA/BSA. The Society is covered by the Financial Ombudsman Service. Leeds Building Society offers some investment products that may be operated through branches and by post and certain products which can be operated by post only.

The Society’s FSA registration number is 164992.

Other taxes or costs may exist that are not paid by Leeds Building Society.