Bond is linked to FT-SE

Amid predictions of lower interest rates, savers can take advantage of a range of investment products aimed at providing higher returns than ordinary savings accounts.

Lloyds Bank is offering its First Issue Stockmarket Bond, linked to the rise in value of the top 100 companies on the London Stock Exchange.

Over a five-year period the bond promises to match 150 per cent of any gains on the FT-SE 100. Should the market fall, investors will receive their capital in full at the end of the term. The FT-SE rise is calculated as the average over the last three months of the bond. Investments between pounds 1,000 and pounds 50,000 are accepted.

Woolwich Building Society's Guernsey offshoot is offering sterling account holders 5.75 per cent gross on balances between pounds 500 and pounds 9,999, rising to 6.1 per cent for sums over pounds 40,000 and 6.5 per cent for more than pounds 250,000.

Yorkshire Bank's monthly income account pays 5.5 per cent gross on deposits over pounds 25,000.

----------------------------------------------------------------- SIX OF THE BEST ----------------------------------------------------------------- Savings ----------------------------------------------------------------- Type Account Term 0% 25% 40% Min pounds GIB Eurolife* 5 years 6.25 6.25 5.31 10,000 B Soc Northern Rock Instant 7.10 5.33 4.26 20,000 Tessa Shepshed B/S 5 years 7.80 7.80 7.80 1 ----------------------------------------------------------------- Compounded annual rates except for GIB (guaranteed income bond) *This is the highest rate on the market at the moment. ----------------------------------------------------------------- Source: Chase De Vere 071-404 5766 -----------------------------------------------------------------