Leeds Building Society has launched a new issue of its five-year fixed-rate bond, offering a competitive return for savers who can commit their saved assets until 2031, earning an “excellent” Moneyfactscompare rating this week. The 5 Year Fixed Rate Bond (Issue 693) pays a 4.40% interest rate, which experts have described as an “attractive” option for those looking to climb the “top tables” of the savings market.

Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, noted that the building society has increased rates across its entire fixed-rate range to remain competitive. She said: “One deal to take a position in the top tables is the five-year option. The account pays an attractive 4.40% until 30 April 2031, and savers can deposit as little as £100.” One standout feature of the bond is the flexibility to add more funds after the initial deposit.

Ms Eastell added: “Further additions are permitted until April 30, 2026, which may add to its appeal.”

However, as with most long-term fixed products, the account comes with strict rules regarding withdrawals. Savers will not be able to access their cash before the maturity date.

“Earlier access is not permitted so it’s crucial that savers are confident they will not need to access their nest eggs before the term finishes,” Ms Eastell warned. Despite the lack of flexibility, the product has received an “Excellent” Moneyfacts rating.

Leeds Building Society’s five-year fixed bond offers a 4.40% AER interest rate on deposits between £100 and £1 million. It is available to those aged 18 and over, with the option to open a joint account.

The account can be opened online, by post, or in person at a branch. Once the account is open, it can be managed via post or in-branch.

Leeds Building Society serves over 991,000 members across the UK. As a mutual organisation, the society is owned by these members, rather than shareholders, and holds over £31.6 billion in assets, making it the fifth-largest building society in the country, behind Nationwide, Yorkshire Building Society (YBS), Coventry Building Society and Skipton.

If you are looking for a long-term home for your savings, there are several other competitive options currently available on the market.

A Chetwood Bank 5 Year Fixed Rate Savings Account currently offers a competitive 4.65% AER. It requires a minimum opening deposit of £1,000, has no maximum investment and its interest is paid on its anniversary. As with most high-interest bonds, the rate is guaranteed for the term, but you must be comfortable with having no access to your funds until the account matures.

Meanwhile, the Close Brothers Savings Fixed Rate Bond, a well-established name in the savings market, is currently offering 4.67% AER on its five-year bond. This account requires a higher minimum opening deposit of £10,000 and has a maximum investment of £2million. Its interest is paid yearly and must be paid away, meaning interest earned cannot be kept in that same account to compound, but must be transferred or paid out to a separate account.