Rising rates on offer

FALLING interest rates have prompted the launch of savings accounts that offer rising rates over a set period.

The four-year Quantum Account from Norwich & Peterborough starts at 5 per cent and rises to 7.5 per cent. Minimum investment is pounds 3,000, maximum pounds 15,000. Withdrawals are allowed with seven days' notice, or instant access with the loss of seven days' interest. The account closes on Christmas Eve.

Nationwide has a three-year Fixed Growth Bond, which rises in six stages from 5.5 per cent to 7.5 per cent. The minimum investment is pounds 5,000.

Portman Building Society is withdrawing its fixed-interest bond on Tuesday, Budget day. On a minimum investment of pounds 500 it pays 6.5 per cent for a six-month term, and 6 per cent for 12 months.

The rates paid on guaranteed income bonds are on the way down so anyone thinking about investing should not delay. Consolidated Life has a one-year GIB at 4.3 per cent and a two-year at 4.75 per cent for investments over pounds 2,000.