Interest rate rises

Alliance and Leicester Building Society is now paying 5 per cent on balances of more than £5,000 in its Alliance current account. This represents an interest increase of 4 percentage points.

Newcastle Building Society is offering a fixed-rate bond - the Resolution bond. The interest rate is fixed at 8.6 per cent gross until 28 February. The minimum investment in the bond is £2,000. For investors who prefer to take their interest monthly, theinterest is 8.3 per cent.

SIX OF THE BEST SAVINGS Type Account Term 0% 25% 40% min GIB Cons. Life 5 yrs 7.15 7.15 6.08 £2,000

B.Soc Northern Rock Instant 6.9 5.18 4.14 £20,000

Tessa Mkt Harboro' 5 yrs 7.6 7.6 7.6 £9,000

Source: Chase De Vere 071-404 5766

MORTGAGES Variable Alliance & Leicester 6.5% up to 95 % loans * Fixed Britannia 4.79% 1.7.96 on loans up to 80% fee £295 ** Capped Royal Bank of Scotland 9.25% 11.1.2000 on 95% loans, fee £295

* 1.6% discount for three years ** no compulsory buildings and contents insurance. If you do take it, further 0.25% off Source: John Charcol 071-611 7000