Bonds set to rise

SAVERS a iming to invest funds in income bonds should wait a while because rates look set to rise, according to Baronworth Investment Services, a firm of Essex advisers.

Baronworth, which specialises in income bonds, says its discussions with providers suggest rates for one, two and three-year bonds may rise in the wake of this week's 0.5 per cent base rate rise.

AIG Life, the British subsidiary of a large US insurance company, is offering 5.3 per cent net on two-year investments of between pounds 20,000 and pounds 50,000.

Over three years, Premium Life offers 6.9 per cent net on sums above pounds 1,000, and over four years 7.2 per cent net.

-------------------------------------------------------------------- SIX OF THE BEST -------------------------------------------------------------------- Savings -------------------------------------------------------------------- Type Account Term *0% *25% *40% Min GIB Eurolife 5 years 7.60 7.60 6.46 pounds 10,000 B Soc Nottingham Instant 6.50 4.88 3.90 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 -------------------------------------------------------------------- Mortgages -------------------------------------------------------------------- Type Source Deal Variable Alliance & Leicester 6.04% up to 90% loans Fixed Britannia 8.15% 1.9.99 on 60% loans fee pounds 275 Capped Bristol & West 5.75% for 2 yrs on 90% loans fee pounds 275 -------------------------------------------------------------------- Source: John Charcol 071-611 7000 --------------------------------------------------------------------