Leeds Building Society boosts interest on cash ISA to competitive rate

Leeds Building Society has launched a new issue of its one-year fixed-rate ISA with a market-leading interest rate, giving customers’ savings an extra boost. While the market continues to fluctuate, LBS’ fixed-rate deal can help provide a layer of certainty and currently competitive returns.While there is currently no savings account offering an interest rate that beats inflation, fixed-term cash ISAs are known for offering higher returns than other savings accounts.Coming with additional perks and benefits, such as providing the opportunity for savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA), opting for an ISA is a popular choice for many.Fixed-rate ISAs are particularly popular with savers, as during a time of fluctuating rates and economic uncertainty, they allow people to lock in a specified interest rate for a year or more, depending on the account chosen.Leeds Building Society’s new 1 Year Fixed Rate Cash ISA (Issue 175) has been launched with a competitive interest rate of 3.85 percent Annual Equivalent Rate (AER).READ MORE: Recognise Bank to pass on Bank of England interest rate rise to savers Leeds Building Society boosts interest on cash ISA to competitive 3.85% rate (Image: GETTY)The account can be opened with a deposit of £100 to savers over the age of 16.With a year-long term, interest is calculated daily and paid on maturity of the account on December 3, 2023.While some accounts offer some level of flexibility, savers investing in this deal will not be allowed to access their money without a penalty.Early withdrawals will be subject to 60 days’ loss of interest on the amount equivalent to what has been withdrawn or transferred.DON’T MISS: Interest rates to rise again next month – act now or risk debt wipeout [INSIGHT]Andrew Bailey explains why BoE hiked interest rates to 3% [EXPLAINED]Impulse spending is a thing of the past – shoppers think before buying [ANALYSIS] Cash ISAs are known for offering higher returns than other savings accounts. (Image: EXPRESS)Withdrawals are also permitted for this account, but will be subject to a slightly stricter 90-days loss of interest.Falling just behind Aldermore is Yorkshire Building Society’s Fixed Rate Cash e-ISA with an AER of 3.3 percent.The AER is fixed until November 30, 2023, and a much smaller deposit of £100 is required to open the account.Withdrawals are not permitted for this account and early closure will result in 60 days’ loss of interest on the closing balance.