Five-year escalator bond offer

FINANCIAL Assurance is offering a five-year guaranteed escalator bond offering rates, on a minimum pounds 5,000 investment, that rise from 6 to 8.88 per cent over the five years.

On two-year guaranteed income bonds the market leader is Prosperity, which offers 5.85 per cent on pounds 25,000 investments.

Hinckley's new Tessa brings with it a penalty of 90 days' loss of interest for transfers. Rates on Coventry's instant access account are fixed until 31 July. There is 10 days' loss of interest on withdrawals.

Manchester Building Society is offering annual gross rates of between 7.3 and 8.25 per cent on its postal account Money by Mail. The rates include a 0.75 per cent bonus for account holders who make no withdrawals.