Leeds Building Society has announced the launch of a best buy savings bond today.

The Leeds Postal Bond is operated by post and requires an investment of between £10,000 and £1 million.

A savings interest rate of 5.1 per cent will be fixed until January 5th 2007. No withdrawals are allowed before the savings bond matures, when the returns will be paid to the investor .

With the increasing interest in pensions and the uncertainty that people are facing, straightforward products like these offer excellent value and security. I would urge customers to act quickly to avoid disappointment, says the head of marketing and PR at Leeds, Karen Wint.

She believes this savings bond, which is a limited issue, will be very popular and she expects it to have a high take-up.

Earlier this week, Leeds launched another one-year fixed rate savings bond, which pays a savings interest rate of 4.8 per cent until January 31st 2007.

Commenting on the savings bond, Ms Wint said that it offers excellent guaranteed value.

Leeds is the UK's eighth largest building society with assets of over £6.1 billion and 58 branches.

The society recently changed its name from Leeds Holbeck .