Money: Bond rate set each month

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Midland Bank is going to have its stock market- linked income and capital bonds on sale permanently with the terms set each month and holding for five years.

For equity-linked income bonds bought in February income of 6.5 per cent free of tax is available. The income is paid quarterly. The original capital will be repaid in full if the FT-SE 100 index grows by an average of 7 per cent a year. The minimum guarantee is that 70 per cent of capital will be returned.

The Guaranteed Capital Bond, which also has a minimum investment of pounds 5,000, offers 110 per cent of the FT- SE tax-free less a 5 per cent management charge at maturity. Capital is returned in full if there is no rise in the index.

----------------------------------------------------------------- SIX OF THE BEST ----------------------------------------------------------------- Savings Type Account Term 0% 25% 40% Min GIB Eurolife 5 years 6.00 6.00 5.10 pounds 10,000 B Soc Nottingham Imperial Instant 7.00 5.25 4.20 pounds 50,000 Tessa Hinkley & Rugby 5 years 7.75 7.75 7.75 pounds 25 Compounded annual rate except for GIB (guaranteed income bond) ----------------------------------------------------------------- Source: Chase De Vere 071-404 5766 -----------------------------------------------------------------

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