The highest rate is now 7.1 per cent net for five-year savings above pounds 50,000. This is the equivalent of 9.46 per cent gross of basic tax. The three-year rate stands at 6.5 per cent net, up from 6.3 per cent.
Chelsea Building Society has launched a five-year fixed bond, offering 9 per cent gross on savings above pounds 10,000. No capital withdrawals are allowed once an account is opened.
Portman Building Society has refined its Step-Up bond to allow the payment of income monthly without any cut in guaranteed annual rates of return, which start at 6 per cent in year one and rise to 10 per cent in year five.
SIX OF THE BEST
Type Account Term *0% *25% *40% Min
GIB Chase de Vere 5 years 7.61 7.61 6.47 pounds 10,000
B Soc Nottingham Instant 6.60 4.95 3.96 pounds 25,000
Tessa Market Harborough 5 years 7.60 7.60 7.60 pounds 9,000
*Compounded annual rate except for GIB (guaranteed income bond)
Source: Chase De Vere 071-404 5766
Type Source Deal
Variable Northern Rock* 2.94% discounted rate on 90% loans
Fixed First Mortgage Securities 7.85% for 4.5 yrs on 75% loans
Capped Royal Bank of Scotland 8.99% for 5 yrs on 95% loans
*Arrangement fee of pounds 150. Household insurance through Northern Rock.
Source :John Charcol 071-611 7000