Savings - Another inflation buster

Leeds Building Society has announced the launch of a second issue of its Inflation Buster Bond - the latest deal guaranteed to beat inflation by 3.00%. In addition, any early investment prior to the strike date on October 1st 2007 will receive interest equivalent to the Bank of England Base Rate credited on September 30th.

The return is linked to the Retail Price Index (RPI). Hence, if the RPI in July is 206.10 and the following July is 213.93, then the inflation rate over the period is 3.8%. In this scenario, the bond would pay a return of 6.8%.

If the rate of inflation is 3.8% a year over the term, an investment of £10,000 made on August 30th 2007 will have a pre-tax maturity value of £11,427 after two years. This is made up of £52 for early investment and £1,375 from the RPI inflation rate.

Minimum investment is £1,000, maximum investment £1 million (£2 million for joint accounts).

No capital withdrawals are permitted.

The account can be opened in branches or by post.

This entry was posted on Thursday, August 30th, 2007 at 3:35 pm and is filed under All. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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