Savers can go up with the escalator

LEEDS PERMANENT has launched a fixed-rate escalator bond. Interest grows each year from 6 per cent in year one to 10 per cent in year five, giving an average of approximately 8 per cent over the five years. Minimum investment is pounds 10,000.

Black Horse Life has reissued its five-year guaranteed bond with higher rates. It pays a guaranteed rate of up to 6.5 per cent if held for the full term.

Harpenden Building Society has launched a 12-month variable rate bond that pays 6.25 per cent interest. Minimum investment is pounds 2,000.

Chase de Vere is offering a five-year income bond which pays 7.1 per cent net. The rate rises to 7.25 per cent for investments over pounds 50,000.

National & Provincial is launching the second issue of its five-year fixed-rate saving account. Interest on the bond will be 7.75 per cent annually or monthly at 7.5 per cent.

Halifax Building Society is increasing the rates on its Stepped Income Reserve Account. The gross annual rates now range from 6.5 per cent in the first year to 10.5 per cent in the fifth year. Previously the rates were 6 and 10 per cent.

Gross monthly rates are now between 6.45 and 10.2 per cent compared with 5.95 and 9.7 per cent.

----------------------------------------------------------------- SIX OF THE BEST ----------------------------------------------------------------- Savings Type Account Term *0% *25% *40% Min GIB Chase de Vere 5 years 7.1 7.1 6.04 pounds 10,000 B Soc Northern Rock Instant 6.55 4.91 3.93 pounds 10,000 Tessa Hinkley & Rugby 5 years 7.35 7.36 7.36 pounds 3,000 ----------------------------------------------------------------- *Compounded annual rate except for GIB (guaranteed income bond) Source: Chase De Vere 071-404 5766 -----------------------------------------------------------------

----------------------------------------------------------------- Mortgages ----------------------------------------------------------------- Type Source Deal Variable Northern Rock* 2.99% discounted rate on 90% loans Fixed First Mortgage Securities 7.85% for 5 years on 75% loans pounds 275 fee Capped Royal Bank of Scotland 8.99% for 5 yrs on 95% loans ----------------------------------------------------------------- *Arrangement fee of pounds 150. Household insurance through Northern Rock. Source :John Charcol 071-611 7000 -----------------------------------------------------------------