Leeds launches new fixed rate ISA at 1.01%

The product will be available from Thursday, 24th November, and means all the Society’s current fixed rate products – including ISAs and bonds – pay at least 1%.

The Society has also launched a new, limited-issue one year fixed rate bond, paying 1.01% gross p/a.

The launch comes as Moneyfacts dats shows that all ISA averages have now fallen below the 1.00% barrier for the first time on its records.

Richard Fearon, Leeds Building Society’s Chief Commercial Officer, said: “Our new one year fixed rate ISA offers the best return on the High Street for this type of product.

“Increasing the rate we can offer on a one year product means all our current fixed rate ISAs, as well as our fixed rate bonds, pay more than 1%.

“All our ISAs accept transfers in of previous years’ subscriptions and the minimum deposit for fixed rate ISAs is £100.”

Charlotte Nelson, Finance Expert at Moneyfacts, commented: “We are still seeing the fallout from the Bank of England’s base rate cut, with rates continuing to fall. ISA rates have been hit particularly hard and as a result the long-term fixed ISA rate, the last bastion of hope, has slid below 1.00% for the first time. Activity in the ISA market tends to remain stable in the winter months, with most of the activity occurring during the ISA season, so the fact that providers are actively cutting at this time of year is notable.

“The ISA market has had the biggest shock to rates, which is in part due to the fact that these deals have historically paid higher rates than standard accounts, therefore giving providers more room to cut rates in this area.

“The Personal Savings Allowance also has a lot to answer for, as since its introduction in April the appetite for ISAs from both providers and savers has dropped dramatically, causing rates to plummet to these new lows."