The Skipton posts a return of 7.88%

SKIPTON Building Society has launched a new instant access postal account paying a market leading rate of 7.88 per cent net of basic rate tax for a minimum deposit of pounds 2,000.

For a smaller deposit of pounds 1,000, the Scarborough offers 7.8 per cent net on its similar instant access postal account, while the Cheltenham & Gloucester postal London share account pays 7.8 per cent net (10.4 per cent gross) for a minimum deposit of pounds 2,500.

The C&G's postal account continues to take new accounts whereas several others, including those from the Nottingham Building Society and Northern Rock, are now closed to new business.

Exeter Bank cut its Tessa rate from 11.73 to 11.46 per cent last Monday, so the Stroud and Swindon Building Society's Tessa looks the best buy with a rate of 11.6 per cent on an initial deposit of pounds 100 without early transfer penalties.

Britannia Building Society pays 10.25 per cent fixed for five years but the initial deposit is pounds 8,250.

------------------------------------------------------------------------ SIX OF THE BEST ------------------------------------------------------------------------ Savings ------------------------------------------------------------------------ Type Account Term *0% *25% *40% Min GIB Aegon Life 4 years 8.55 8.55 7.27 pounds 50K B Soc Skipton Instant 10.5 7.88 6.30 pounds 2,000 Tessa Stroud & Swindon BS 5 years 11.60 11.60 11.60 pounds 100 ------------------------------------------------------------------------ *Compounded annual rate except for GIB - guaranteed income bond ------------------------------------------------------------------------ Source: Chase De Vere 071-404 5766 ------------------------------------------------------------------------

------------------------------------------------------------------------ Mortgages ------------------------------------------------------------------------ Type Source Deal Variable Halifax BS 8.5% inc first-time buyers' discount Fixed Chelt & Gloucester BS 9.6% for two years Capped Mortgage Services 9.99% to June 1997 ------------------------------------------------------------------------ Source: John Charcol 071-589 2626 ------------------------------------------------------------------------