Leeds & Holbeck Building Society is launching a three year fixed rate bond paying 4 per cent in year one, 4.5 per cent in year two and 5 per cent in year three.
Savers can withdraw up to 50 per cent of their investment without notice or penalty and all capital is returned at the end of the term. The bond is available as an Isa or Toisa.
Leeds & Holbeck head of marketing Tony Burdin says: “We agree with those commentators who are now forecasting that interest rates will not increase this year and may even go down further. This bond means that savers can maximise their returns in the current low interest rate climate.”