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Leeds Options Bond (Issue 38)
The Leeds Options Bond (Issue 38) is only available in conjunction with a Portfolio Investment Bond from Aviva for long term growth potential combined with a one year Leeds Building Society savings account with tiered fixed rates depending on how much you invest.
A minimum of 60% of your overall investment is used to invest in a Portfolio Investment Bond from Aviva and the remaining funds, up to a maximum of 40%, are invested in the one year Leeds Options Bond (Issue 38).
For example, on an investment of £10,000, if £6,000 is placed in a Portfolio Investment Bond from Aviva then £4,000 is invested in the one year Leeds Options Bond (Issue 38). However, you can invest more than 60% in a Portfolio Investment Bond from Aviva if you wish.
The Portfolio Investment Bond is a lump sum investment bond with no fixed term. It offers a range of funds which are typically invested in equities, property and fixed interest securities. The value of your investment can go down as well as up and you are not guaranteed to get back what you put in. The minimum investment into a Portfolio Investment Bond from Aviva is £5,000. This is designed to be a long term investment, if you take money out in the first 5 years, early exit charges will apply.
| Summary Box Key Product Information for our Saving Account(s) |
||
|---|---|---|
| Account Name | Leeds Options Bond Issue 38 | Portfolio Investment Bond from Aviva |
| Interest Rates (AERs) | Interest rates for Leeds Options Bond are given below. | There is no interest paid on this account. The return will depend on the funds selected to invest in. The value of the investment in the Portfolio investment bond from Aviva can go down as well as up and is not guaranteed. You may get back less than you invested. Please ask in branch for full details. |
| Tax Status | The gross rate(s) of interest shown for Leeds Options Bond will be payable net of the appropriate rate of income tax which may be reclaimed by non-taxpayers) or, subject to the required certificate, gross. The tax treatment depends on the individual circumstances of each customer and may be subject to change in the future. | Tax is paid on the funds in which you invest and this cannot be reclaimed by non-taxpayers. Whilst this covers the tax liability of most basic rate taxpayers, further income tax may be payable when you withdraw money, but this will depend on your own personal tax situation at that time. Tax rules are subject to change. |
| Conditions for bonus payment | There is no bonus available on this account. | There is no bonus available on the Portfolio investment bond. |
| Withdrawal arrangements | Access is limited to one withdrawal without notice or loss of interest prior to maturity (30 April 2013) providing the minimum operating balance of £100 is maintained. If a second withdrawal is required or the operating balance falls below £100, the account will be closed. | An exit charge will be applied to full or partial withdrawals in the first five years. However, for regular withdrawals of 7.5% per annum or less of the original investment early exit charges will not apply. Requests for regular withdrawals need to be mentioned when setting up the bond. |
| Access | Account can be opened through any of our branches. | Portfolio investment bond can be taken out through any of our branches. |
How much interest will I earn?
| Investment | Annual Interest % Gross§ p.a./AER† (Fixed) |
|
|---|---|---|
| £50,000+ | 6.00 | |
| £25,000+ | 5.25 | |
| £100+ | 4.50 | |
| Investment | Monthly Interest (Fixed) | |
| % Gross§ | % AER† | |
| £50,000+ | 5.75 | 5.90 |
| £25,000+ | 5.00 | 5.12 |
| £100+ | 4.25 | 4.33 |
Rates correct as at 2 April 2012.
The Leeds Options Bond (Issue 38) is only available in conjunction with a Portfolio Investment Bond from Aviva.
Other Product Features:
Minimum and maximum investment and operating balance:
The minimum investment and operating balance is £100 and the maximum investment and operating balance is £250,000 (£500,000 for joint accounts). A minimum of 60% of your overall investment is used to invest in a Portfolio from Aviva and the remaining money, up to a maximum of 40% is invested in the Leeds Options Bond.
When is interest paid?
Interest is paid on maturity (30 April 2013), or monthly on the last working day of the month.
How is interest paid?
Annual interest can either be credited to the account or transferred either to another building society/bank account or to another account held with the Society. Monthly interest must be transferred either to another building society/bank account or to another account held with the Society.
Portfolio from Aviva - at least 60% of your investment
- Portfolio from Aviva is a lump sum investment bond with no fixed term. It offers you a choice of investment funds typically investing in equities, property and/or fixed interest securities, which give a range of risks to suit your needs.
- Portfolio from Aviva is designed to be a long term investment. You can invest for as long as you like however there are exit penalties in the first five years. Unlike the deposit part, the value of your investment in a Portfolio from Aviva can go down as well as up and you are not guaranteed to get back what you put in.
- The minimum investment into a Portfolio from Aviva is £5,000. No additional investments are permitted once a Portfolio has been opened.
- There is a management charge, which is level throughout the lifetime of your bond. If you take out money from your bond in the first five years, early exit charges will apply; for any full or partial withdrawals during the first 5 years there will be an early exit charge, the amount depends on when money is taken out. However, for regular withdrawals of 7.5% per annum or less of the original investment, early exit charges will not apply. Requests for regular withdrawals needs to be mentioned when setting up the plan.
Leeds Options Bond – up to 40% of your investment
- Leeds Building Society’s Leeds Options Bond (Issue 38) offers a competitive rate of interest which is fixed at up to 6% Gross§p.a./AER† paid annually, or up to 5.75% Gross§/5.90% AER† paid monthly (rates assume a minimum investment of £50,000), depending on the amount invested until maturity (30 April 2013). We are able to pay you such a high rate of interest by sharing with you some of the commission we get from selling the Portfolio from Aviva.
- The Leeds Options Bond (Issue 38) will mature at close of business on 30 April 2013. On the day after maturity (1 May 2013), the Society will transfer your investment (including any interest) to a maturity account. Full details including terms and conditions will be provided before maturity.
- The minimum investment and operating balance is £100 and the maximum is £250,000, (£500,000 for joint accounts) (subject to your initial investment in the Leeds Options Bond not exceeding 40% of your overall investment when you open an Options Investment Plan). After the initial investment, no further deposits can be made.
- You can make one withdrawal without notice or loss of interest, prior to maturity. If a second withdrawal is required, or the account balance falls below £100, the account will be closed.
- The Leeds Options Bond (Issue 38) is only open to UK residents.
