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Top fixed rate ISA

Leeds Building Society are offering 4.6% fixed for 5 years, with the provision for a one-off 25% withdrawal.
For myself I am an optimist - there does not seem to be much use being anything else.
Sir Winston Churchill

Comments

  • apt
    apt Posts: 3,191 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 7 April 2010 at 5:27PM
    In terms of interest rate this is beaten by the Yorkshire/Clydesale Bank 5% five year fix, although this does not allow the withdrawal/transfer of 25% without penalty.
  • Mickygg
    Mickygg Posts: 1,737 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    fairtrade wrote: »
    Leeds Building Society are offering 4.6% fixed for 5 years, with the provision for a one-off 25% withdrawal.

    You don't by any chance work in the advertising/marketing dept of Leeds do you......
  • kostigovs
    kostigovs Posts: 215 Forumite
    apt wrote: »
    In terms of interest rate this is beaten by the Yorkshire/Clydesale Bank 5% five year tix, although this does not allow the withdrawal/transfer of 25% without penalty.

    Seems to be about the best rate around albeit a lengthy tie in period.

    I've gone for the Clydesdale Isa for 2010-2015.
    No doubt rates will go up between now and the maturity date but in the meantime I am still benefitting from the higher rate
  • fairtrade
    fairtrade Posts: 476 Forumite
    Mickygg wrote: »
    You don't by any chance work in the advertising/marketing dept of Leeds do you......

    I do not work in the financial services industry
    For myself I am an optimist - there does not seem to be much use being anything else.
    Sir Winston Churchill
  • alanq
    alanq Posts: 4,216 Forumite
    1,000 Posts Combo Breaker
    edited 7 April 2010 at 3:33PM
    I notice that the Leeds BS and some other ISA providers have fixed term ISAs that run for x years + a couple of months. As interest rates tend to be higher while providers compete for business at the end of one tax year and the beginning of the next this means that ISAs opened at that time will mature when interest rates tend to be a little lower.

    The current Leeds BS offering matures at the end of June 2015. Coventry BS's offerings mature at the end of May of the relevant years.

    The Yorkshire Bank / Clydesdale Bank 5% 5-year ISA matures at the end of March 2015. However it does not have the 25% penalty free access. Also, if I recall correctly, there is a clause that if they don't receive instructions from you by the maturity date they roll the existing ISA into another on the maturity date.

    Correction: Either I did not recall correctly or things have changed since I last looked. The Yorkshire / Clydesdale ISA is transferred into an instant access ISA on maturity.
    "Maturity, your Cash ISA – Fixed Rate Bond will convert to a Cash ISA – Instant Access account."
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