Leeds & Holbeck launches penalty free 5% bond

Leeds & Holbeck has launched a flexible bond that pays up to 5% and allows penalty free access to funds. The bond, which is available in an Isa or Tessa-only Isa version, has a three-year fixed rate paying 4% gross in the first year to 30 November 2003, 4.5% in the second and 5% in the final year to 30 November 2005. With an AER of 4.45%, or 4.48% on the Isa and Tessa-only Isa versions, and a minimum investment of £100, the bond allows 50% withdrawals of the initial investment and pays interest annually and on maturity.