Leeds BS launches 1.35% one year ISA

The move comes as latest industry figures show almost £50bn of ISA savings in the UK is sitting in accounts which pay 0.25% or less.

Richard Fearon, Leeds Building Society’s Chief Commercial Officer, said: “ISAs are an important part of our savings range and we work very hard to offer consistent long-term good value.

“The increased rate on our one year fixed rate ISA makes it market-leading on the High Street and, as we announced last month, from 24th October we’re increasing the minimum rate we currently pay across all member savings accounts to 0.50%.

“More than one fifth of the UK’s total ISA balances is languishing in accounts which pay equivalent to Bank Base Rate or less so it’s worth checking if your money could be working harder.

“All our ISAs allow transfers in of previous years’ subscriptions, which maximises the benefit of receiving your interest tax-free.”