The return is linked to the retail price index (RPI), which is the official measure of how much goods and services bought by average UK household changes. The inflation rate is the percentage difference between RPI on two dates.
Paul Riley, head of group treasury at Leeds Building Society, said: The demand from customers for this bond has been overwhelming and, as a result, we are now launching a fourth issue. The annual change in RPI was 4.2% in October, which is an increase on the previous month.
The bond is ideal for investors looking for a competitive return and is available on a minimum operating balance of only GBP1,000. If the inflation buster bond had been available in earlier years, it would have out-performed the average UK savings rate by 2.32% in 2005 and 2.83% in 2006.
