Challenge to granny

PORTMAN Building Society is challenging the Government's new granny bond with its own fixed interest bond, offering 6 per cent gross fixed for six or 12 months. Minimum investment is pounds 500. Investments of more than pounds 25,000 qualify for 6.5 per cent gross.

Two-year income bonds paying 4.91 per cent are available for investments of pounds 25,000 or more from Prosperity Financial Services.

Financial Assurance offers 5.15 per cent for three-year income bond investments over pounds 20,000 and 5.2 per cent when they rise above pounds 50,000.

Savers with more than pounds 50,000 can get 5.65 per cent from Financial Assurance's four-year bond. Over five years investors with more than pounds 10,000 can get 6.23 per cent from Eurolife's income bond.

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