Fixed rates look more attractive

FACED with the lowest interest rates in 15 years, savers may now wish to look more closely at fixed interest rate products.

The Northern Rock Go Direct postal account, for example, has fixed its rates to last until 1 April.

Coventry Building Society is launching its Fixed Rate Account (Issue 4) today, offering rates between 7 and 7.8 per cent gross on its tiers between the pounds 1,000 minimum investment and the top band which starts at pounds 40,000.

Guaranteed income bonds are also beginning to look more attractive in the light of the interest rate cuts. Templeton Life is offering a 6.5 per cent return on its five-year bond on minimum investments of pounds 2,000.