Leeds & Holbeck Building Society is launching a stepped rate bond guaranteeing a return of 5 per cent in its third year.
The account pays 4.5 per cent for the first year, rising to 4.75 per cent in the second year and to 5 per cent in the third year. The minimum investment is £100 and the maximum is £5,000. Maturity date is 30 September 2004.
Savers an make up to two withdrawals without notice or penalty during the life of the account, providing the £100 minimum balance is maintained.