Escalators still on the way up

THE BATTLE of the escalator bonds reached a new high this week with the launch by Woolwich Building Society of a five-year Guaranteed Growth Bond.

The Woolwich bond offers 7.1 per cent gross in year one, rising to 11.35 in the final year, if income is paid annually. It is now the highest-paying in the market.

Skipton Building Society has launched two fixed-rate bonds, paying 8.25 per cent gross for three years and 8.75 per cent gross for five.

No withdrawals may be made in the first two years.

Friends Provident has a new Income Distribution Bond offering a choice of two funds.