Leeds Options Bond - Issue 12 up to 9% gross

isofa

Does anyone have one of these accounts, or can recommend it?
It's a percentange on the stock market (via an NU bond). Apparantely it can be opened by branch only.

Rates (gross)
£100+ is 6%
£20K + is 7%
£50K + is 9%

One withdrawal can be made without notice or loss of interest prior to 31 August 2008 providing the minimum operating balance is maintained.

Details at: https://www.leedsbuildingsociety.co.uk/savings/rates_notice.html

Be interesting to see if it is a good performer, it's obviously not as clear cut as a high interest account or cash bond though.

Jake'sGran

I am very wary of these products and have never been tempted. Yorkshire Bank sent me details of one this week. You only need to see what has been happening on the stock market this week to realise that the money is probably better invested in a straightforward high interest bond or even an instant access savings account.

free4440273

i would not even go there. especially as leeds bs are offering 6.70 gross on a risk-free bond at the moment - that's where i am intending to go after my nationwide bond expires in october. looks as though this might be the peak, meaning the best we get in terms of rates also, when you consider the carnage in the stock markets recently. difficult to say with any certainty now whether the BofE will have the guts to raise rates any further. like others, i'll have to watch this space.

isofa

Thanks all, I'm not tempted either, after reading all the blurb. My current pick is the one-year BMW fixed cash bond at 6.7% gross.

dunstonh

Its naff.

You can buy the NU portfolio bond through IFAs with a 107.5% allocation rate compared to 100% with Leeds. Thats 7.5% straight away.

You will also find the Leeds staff stick you in NU's balanced managed fund whereas an IFA has access to over 100 funds on that bond including non stockmarket options (as well as your normal suspects on the unit linked range, i.e. invesco perp, schroders, JPM, Gartmore etc)