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  5 Year Fixed Rate Escalator ISA
Home > Savings > Our Savings Range > 5 Year Fixed Rate Escalator ISA

5 Year Fixed Rate Escalator ISA

If you want to save tax-free – and also want to enjoy the reassurance of guaranteed returns – a Leeds Building Society 5 Year Fixed Rate Escalator ISA may be just what you’re looking for. It’s a refreshingly simple savings account which combines the tax advantages of an ISA with great rates and efficient service from Leeds Building Society.

What’s more you can easily transfer your existing ISA funds to secure this great interest rate.

Key features at a glance

  • Minimum investment: £1.
  • Maximum investment: £3,600 in any tax year (plus previous years investments).
  • When is interest paid? Annual interest is paid on 5 April (commencing 5 April 2009) and on maturity (30 June 2013). Monthly interest is paid on the last working day of each month.
  • How is interest paid? Annual interest can either be credited to the account or transferred either to another building society/bank account or to another account held with the Society. Where annual interest is credited to the account then interest can be withdrawn between 6 and 30 April each year without notice or loss of interest.
    Monthly interest must be transferred either to another building society/bank account or to another account held with the Society.
  • Withdrawals: You can withdraw up to 50% of your initial capital investment before maturity (30 June 2013) without notice or loss of interest. If you exceed this limit, the account will be subject to 90 days loss of interest or an equivalent amount on the amount withdrawn.
  • Transfers in: To transfer your existing ISA from another ISA provider, simply complete the ISA transfer application form and we’ll do the rest.**
  • Transfers out: If, before maturity the 5 Year Fixed Rate Escalator ISA or part of it, is transferred to another ISA manager, the account will be subject to 90 days loss of interest or an equivalent amount on the amount transferred.

How much interest will I earn?

Annual Interest Option Tax-free§ p.a/AER† Overall interest rate applicable to the account
Year 1 - From date of account opening until 30/06/09 5.55

6.00%
Tax-free§/AER†

Year 2 - From 01/07/09 until 30/06/10 5.75
Year 3 - From 01/07/10 until 30/06/11 6.00
Year 4 - From 01/07/11 until 30/06/12 6.25
Year 5 - From 01/07/12 until 30/06/13 6.50
Monthly Investment Tax-free§ p.a AER† Overall interest rate applicable to the account
Year 1 - From date of account opening until 30/06/09 5.30

5.43

 5.90%
Tax-free§/AER†
Year 2 - From 01/07/09 until 30/06/10 5.50 5.64
Year 3 - From 01/07/10 until 30/06/11 5.75 5.90
Year 4 - From 01/07/11 until 30/06/12 6.00 6.17
Year 5 - From 01/07/12 until 30/06/13 6.25 6.43
Interest rates effective from 7 April 2008
  • When will my investment mature?
     
    The 5 Year Fixed Rate Escalator ISA will mature at close of business on 30 June 2013. On the day after maturity (1 July 2013), the Society will transfer your investment (including interest) to a maturity ISA product. Full details, including terms and conditions, will be provided before maturity.

Important notes

§ Tax-free means that interest payable is exempt from income tax.

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

** Please note HM Revenue & Customs guidelines state that the ISA provider has up to 30 days to complete the transfer.

Please note: the tax treatment of ISAs may change. This is a cash ISA. You may only subscribe to (invest in) one cash ISA in each tax year (although in any such year you may also subscribe to a stocks and shares ISA, subject to the overall ISA subscription limits). By opening a cash ISA you will be limiting the amount you can subscribe to a stocks and shares ISA. For further information about ISAs (including subscription limits) please refer to the Society’s leaflet ‘Easy Step Guide to Tax-Free Savings’.

Leeds Building Society is a member of the Building Societies' Association. The 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 of £35,000 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 and deposits are denominated in sterling, all other currencies are covered. Further details are available on request from the Society.

The Society is covered by the Financial Ombudsman Service. The Society subscribes to the Banking Code, which establishes minimum standards of good banking practice. 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 offers some investment products that may be operated through branches and by post and certain products which can be operated by post only.

Leeds Building Society is authorised and regulated by the Financial Services Authority and our registration number is 164992.

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