loose change

New Tessa from Northern Rock...

Northern Rock's new limited issue Tessa will offer a fixed rate of 7.64 per cent tax-free for five years for maturing Tessa accounts of pounds 9,000 re-invested with the society - if investors guarantee to leave the capital and interest untouched for the full five years. The compounded return over the whole period will be 44.5 per cent.

A variable rate option offers 7.25 per cent on the maximum pounds 9,000 maturing Tessas rolled over with Northern Rock, and an initial 7 per cent on smaller balances over pounds 3,000.

TSB is also launching a new fixed-rate Tessa, paying a guaranteed 7 per cent a year tax-free on amounts between pounds 3,000 and the maximum of pounds 9,000.

Alliance & Leicester is offering a new variable rate Tessa, paying 6.1 per cent up to pounds 3,000, rising to 6.5 per cent on amounts over pounds 6,600 and 7.25 per cent on maturing Tessa accounts with pounds 9,000.

Mortgage cut

Yorkshire Building Society has cut its variable mortgage rate to a market- leading 7.39 per cent from next month.

Fixed rate home loans

Coventry Building Society is offering five year fixed-rate mortgages at 6.79 per cent for up to 85 per cent of valuation, with no penalty for early redemption. A discount of 1.45 per cent for four years is also available on variable rate mortgages, but in this case there is a six month penalty for early redemption.