Income bond rates rise

RATES on four of the most competitive guaranteed income bonds have risen by about 0.1 per cent in the past week. Alico remains slightly ahead of Prosperity, Financial Assurance and General Portfolio. However, more fluctuations - probably downwards - are expected in the market next week.

Following a cut in rates on the Bristol & West's Balmoral postal account, the North of England Building Society's instant access postal account looks the best rate this week on minimum balances of pounds 10,000.

Another good buy is Providence Capital's building society bond, which offers an 8.3 per cent net return on investments of pounds 10,000.

----------------------------------------------------------------------- SIX OF THE BEST ----------------------------------------------------------------------- Savings ----------------------------------------------------------------------- Type Account Term *0% *25% *40% Min ----------------------------------------------------------------------- GIB Alico 1 year 8.8 8.8 7.48 pounds 50,000 B Soc North of England BS Instant 10.75 8.06 6.45 pounds 25,000 Tessa Exeter Bank 5 yrs 11.46 11.46 11.46 pounds 100 ----------------------------------------------------------------------- *Compounded annual rate except for GIB - guaranteed income bond ----------------------------------------------------------------------- Source: Chase De Vere 071-404 5766 ----------------------------------------------------------------------- Mortgages ----------------------------------------------------------------------- Type Source Deal ----------------------------------------------------------------------- Variable Halifax BS 8.5% inc 1st-time buyers' discount Fixed Leeds Perm BS 9.85% for three years Capped Lambeth 9.9% to 31 May 1995 ----------------------------------------------------------------------- Source: John Charcol 071-589 2626 -----------------------------------------------------------------------