Looking for an account that provides excellent peace of mind with a guaranteed real return?

Also, the account couldn’t be easier to run – you can simply operate it through your local Branch or by post.

Make sure your savings beat inflation
The Inflation Buster ISA from Leeds Building Society links the interest you receive
to the change in the Retail Price Index (or RPI) between specific dates plus an additional
percentage, so you can be sure that your savings won’t have gone down in value
whilst they have been invested.

What is RPI?
The Retail Price Index or RPI is the official measure of how the value of goods and services bought by an average UK household changes over a period of time. The Government also uses another index called the Consumer Prices Index or CPI. This is measured in a similar way to RPI, but does not include the cost of housing or council tax and has tended to be lower than the RPI. The inflation rate is the change, expressed as a percentage, between the RPI on two dates. For example, if RPI in February is 203.1 and the following February is 211.4, then the inflation rate over the period is 4.09%.

Guaranteed to beat inflation
When you save in an Inflation Buster ISA, from the Strike Date (1 June 2008) your savings rate changes annually in line with inflation (calculated between specific dates) so if inflation goes up, so does the return on your savings. But the account also offers extra interest in addition to the inflation rate, so you are safe in the knowledge that any investment in an Inflation Buster ISA is GUARANTEED to beat inflation over the term of the account.

How does it work?
If you leave your savings in the Inflation Buster ISA until maturity then you will earn the following interest rates:

• From account opening until 31 May 2008: Bank of England Base Rate
• From the Strike Date (1 June 2008) until 31 May 2009: the percentage change between RPI on 29 February 2008 and on 28 February 2009, plus an additional 2.00% tax-free§
• From 1 June 2009 until the Maturity Date: the percentage change between RPI on 28 February 2009 and on 28 February 2010, plus an additional 2.00% tax-free§

The Inflation Buster ISA has been designed on the basis that your investment will remain in the account until the Maturity Date, on 31 May 2010. However, if you decide to transfer all or part of your investment to another ISA Manager or withdraw all or part of your investment prior to the Maturity Date, then you will NOT earn the interest rates as set out above. Full details are explained on how interest is calculated in these circumstances in the Key Features section below.

Key features at a glance

• Interest Rate: The rate applicable to your account from account opening up to and including 31 May 2008 will be equivalent to the Bank of England Base Rate. From the Strike Date (1 June 2008) until 31 May 2009, you will receive an interest rate equivalent to the percentage change in RPI between 29 February 2008 and 28 February 2009 plus 2.00% tax free§ p.a./AER†. From 1 June 2009 until the Maturity Date (31 May 2010), you will receive an interest rate equivalent to the percentage change in RPI between 28 February 2009 and 28 February 2010 plus 2.00% tax-free§ p.a./AER†.
• Minimum investment: £1,000
  
• Maximum investment: £3,600 (+ previous years' investments)
  
• When is interest paid? Interest is calculated daily and paid annually on 31 May (commencing 31 May 2008) and on maturity, (31 May 2010).
  
• How is interest paid? Interest can be credited to the account or transferred to another bank or building society account or another account held with the Society.
  
• Transfers in: To transfer an existing ISA from another ISA provider, simply complete the ISA transfer application form and we'll do the rest. **
• Transfers out/withdrawals: To obtain the rates of interest set out here, your investment must be left in the account until maturity on 31 May 2010. If you decide to transfer your investment or part of it to another ISA Manager, or make a withdrawal, the return will be calculated differently on the amount transferred or withdrawn. For account transfers or withdrawals on or before 31 May 2008, you will receive Bank of England Base Rate on the amount transferred or withdrawn. For account transfers or withdrawals between the Strike Date (1 June 2008) and 31 May 2009, you will receive interest that is credited on 31 May 2008 and 2.00% tax-free§ on the amount transferred or withdrawn. For transfers or withdrawals from 1 June 2009 to the Maturity Date (31 May 2010), you will receive the interest that is credited on 31 May 2008 and 31 May 2009, plus 2.00% tax-free§ on the amount transferred or withdrawn.
• When will my account mature? Your Inflation Buster ISA will mature on 31 May 2010. On maturity, the Society will transfer your investment (including interest) to a maturity ISA product with the Society, details of which will be sent to you before maturity.