Chance of a bonus

MANCHESTER Building Society is offering a 0.75 per cent bonus on top of its Money by Mail postal account rates to savers who make no withdrawals in the account's first year.

The 7.5 per cent gross rate on pounds 50,000 deposits therefore rises to 8.25 per cent when the bonus is added.

Northern Rock is cutting its rates and now offers a 7.5 per cent gross rate on pounds 20,000 deposits.

Meanwhile, Financial Assurance has launched a five-year escalator bond which offers a 5.75 per cent return for the first year, 6 per cent in the second, 6.25 per cent in the third, 6.7 per cent in the fourth and 7 per cent in the fifth.