Leeds BS Fixed Rate Postal Bond

Special_Saver2

Leeds Building Society launched this bond today.

This new bond pays 6.55% gross p.a. (6.60% AER) until 30th June 2008 - which is less than the other bonds mentioned here - but it allows you to withdraw money without notice or penalty provided you leave at least £5,000 in the account.

I know this won't interest all of you but I thought it would post it here in case somebody here finds it of use.

http://www.leedsbuildingsociety.co.uk/savings/fixed_rate_postal_bond.html

Key features at a glance

• Minimum investment: £5,000.
• Maximum investment: £50,000.
• When is interest paid? Annual interest is calculated daily and paid on maturity (30 June 2008).
• How is interest paid? Annual interest can be added to the account or transferred either to another building society/bank account or to another account held with the Society.
• Withdrawals: You can make unlimited withdrawals without notice or penalty, as long as the minimum balance is maintained.
• Open your account: By post

Full terms and conditions: http://www.leedsbuildingsociety.co.uk/savings/terms_postal.html#postalbond

Actually, reading point 9 of the terms and conditions, I wonder whether you can close the bond completely upon request?

"9.Withdrawals can be made at anytime, without notice or loss of interest, subject to the minimum balance of £5,000 being maintained. If the account falls below £5,000 at any time, the account will be closed."

Special_Saver2

Special_Saver2 wrote: »

Actually, reading point 9 of the terms and conditions, I wonder whether you can close the bond completely upon request?

"9.Withdrawals can be made at anytime, without notice or loss of interest, subject to the minimum balance of £5,000 being maintained. If the account falls below £5,000 at any time, the account will be closed."

Just thought I would let you know that I sent an e-mail to Leeds BS and received a very prompt reply about this. They said:

Thank you for your email. Yes you would be able to close the account before it matures, what you wouldn't be able to do is leave the account open with less than £5000.