Britannia competitive despite cut

BRITANNIA Building Society is dropping its instant access rates but still remains the most competitive society - with its 7.05 gross return - on the pounds 10,000 to pounds 25,000 band.

On its Tessa account, Halifax offers a relatively uncompetitive standard return of 6.75 per cent. But this rate is bumped up each year if savers keep their investment in place for the full 12 months. In year one, savers will get an extra 1.5 per cent. In year two, the bonus return falls to 1.0 per cent. An extra 0.75 per cent is offered in the third year, an extra 0.50 per cent in the fourth and an extra 0.25 per cent in the fifth. A pounds 100 loyalty bonus is given to savers who stay in for the full five years. Minimum investment is pounds 500.

Consolidated Life offers the most competitive GIB rates on pounds 2,000 bonds. A one-year bond earns 4.75 per cent. A five-year bond earns 6.25 per cent.