Euro first for Leeds
LEEDS Building Society has become the first UK mutual to open a euro deposit taking operation in Ireland.
The new range of savings products includes one and two-year fixed rates with penalty free access – a move which the society described as unusual in the Irish savings market.
Kim Rebecchi, director of sales at Leeds Building Society, said: “This represents a significant venture for us and it is a really exciting development.
“We are delighted to be the first UK building society to enter the market and it will be the first time we have accepted deposits in euros.
“We know that a high guaranteed return with access is unusual in the market. This combination has been extremely popular in the UK and the ability to access funds whilst receiving a fixed rate delivers excellent flexibility and peace of mind. No matter what happens in the market, investors simply cannot lose.”
The Leeds entered the Irish mortgage market in September 2006 and its mortgage business there was worth a sterling equivalent of more than £120m last year.
The Society says volumes in the first quarter of 2008 have been “healthy”.
Ms Rebecchi added: “Our business model means that the vast majority of our net lending is funded from savers and this is the next logical step.
“The feedback we have received from our mortgage customers has been fantastic. We have invested in new systems to facilitate a euro deposit taking capability and we will ensure that savers receive the same excellent service.
“We will also investigate the demand for online savings in the future.”
The Society’s new operation is based in Dublin.
Leeds Building Society has assets of more than £9.2bn and 68 branches throughout the UK and Gibraltar. The Society has operated from the centre of Leeds since 1886.
