Leeds launches five-year Isa

Leeds Building Society has added a five-year fixed-rate cash Isa, paying 2.25 per cent interest a year to its range of tax-free savings.

Kim Rebecchi, Leeds Building Society’s distribution and marketing director, said: “The new Isa adds to the choice for savers looking for tax-free returns, if they are able to put away their money for the longer term.

“We would encourage all savers to have an Isa, to ensure your nest egg works a little bit harder, and make the most of your annual cash Isa allowance.”

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Key Features

- Five-year fixed-rate Isa, maturing on 2 February 2020.

· 2.25 per cent fixed until 2 February 2020.

· Interest can be added to the account, transferred or paid to another account with the society

· Transfers in of previous year’s Isa subscriptions are permitted.

· Access to 25 per cent of the capital investment is permitted without penalty.

· Interest is paid annually on 2 February, commencing on 2 February 2016, and on maturity.

· Minimum Investment £100.

Adviser view

Rebecca Aldridge, director of Nottinghamshire-based Balance Wealth Planning, said: “The Leeds’ new Isa is reasonably competitive and also a brand people trust in this area. The Isa rates are all quite similar, but anything that encourages people to save is positive, and the easier it is for them to save the better.”