Personal Finance: Loose Change

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Indy Lifestyle Online
SAINSBURY'S BANK has launched a three-year bond which sees higher interest rates each successive year.

The product, dubbed a stepped bond, pays 5.6 per cent in the first year; 6.3 per cent in the second and 8.5 per cent in the final year. The bank says that an initial deposit of pounds 3,000 would generate pounds 612 in interest over the full term. The issue forms part of a bid by the bank to persuade customers to take a fresh look at the ways in which they save.

David Noble, director of marketing, said: "For those savers who are happy to invest their money for three years, it's time to take their nest egg away from accounts which are past their `best before date' and look to put them somewhere a bit fresher."

THE WEB-BASED provider of financial information, eXchange, is set to launch what it claims is the country's first online mortgage provider - named

It will start up at the end of next month. The service "will be the first in the UK to offer both new mortgages and re-mortgages completely online," according to a company source.

The service will be based in Scotland. An eXchange spokesman said it will be backed by more than pounds 1bn in funds and several key lenders, without naming the supporting companies.