Sun rises on fixed Tessas
Sunday 17 March 1996
Recent jitters in bond markets mean that the longer-term interest rates on which fixed-rate Tessa deals are based have risen by nearly half a per cent. That stands in contrast to the Chancellor's latest 0.25 per cent cut in base rates to 6 per cent, which is likely to feed through into cuts in the interest offered on variable-rate Tessas.
Although a relatively unknown name, Sun Banking Corporation is the banking arm of the better-known Sun Life of Canada. It can be contacted on 01438 744505.
A rate of 7.4 per cent is not as high as the very best fixed-rate offers available when the first rash of Tessa 2s were launched in January.
However, it is arguably more sustainable because of the change in interest rates in the bond market. Liam Hare, of Sun Banking Corporation, said it might be possible to increase its fixed-rate offer further, though not at present. Other Tessa providers might well also increase their fixed- rate offers.
Certainly, existing fixed-rate Tessa deals should prove more sustainable, particularly compared with the interest offered on variable-rate deals.
While Tessa rates have tended to hold up better than interest rates on other saving accounts in recent months, rates in general are still down by perhaps half a per cent since January.
Johnson Fry, the investment firm, will send a free Tessa Directory listing rates and conditions. Ring 0171-451 1200.
Minimum Rate % Transfer interest deposit penalty
Sun Banking Corp pounds 9,000 7.40F 180 days
Yorkshire pounds 9,000 7.30F Up to 180 days
West Bromwich pounds 3,000 7.10F 180 days
B'ham Midshires pounds 1,000 7.05F 180 days
TSB pounds 9,000 7.05F 120 days
Royal Bank of Scotland pounds 9,000 6.75F-9.25F12 30 days.
Allied Trust Bank pounds 9,000 6.25F-8.75F2 Unspecified
Northern Rock pounds 9,000 8.00 pounds 30 +
C&G pounds 9,000 7.75 pounds 30
Bath pounds 1 7.50 Discretionary
Mercantile pounds 1 7.50 pounds 30
Northern Rock pounds 3,001 7.50 pounds 30+
Allied Trust Bank pounds 9,000 7.25 pounds 25
F=fixed interest; 1interest not compounded; 2 fixed rates rise by steps over five years - highest rate only in year five. Source:Moneyfacts
Sales of the tablet are set to fall again, say analysts
Met Police confirm there was a 'minor disturbance' and that no-one was arrested
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
Parties threaten resort's image as a family destination
I Am Bread could actually be a challenging and nuanced title
- 1 Indian footballer Peter Biaksangzuala dies after injuring spine doing somersault celebration
- 4 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 5 Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
'Russian submarine spotted' by Swedish military off coast of Stockholm
Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver allegedly kicks gay couple off for kissing
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...