New postal account opens

FINANCIAL Assurance is offering the most competitive rates on guaranteed income bonds between two and five years. A pounds 5,000 two-year bond, for instance, will attract a return of 5.70 per cent.

On one-year bonds Consolidated Life offers the best rates - 4.75 per cent, on investments below pounds 20,000.

For sums above pounds 20,000 General Portfolio offers a rate of 5.10 per cent.

Nationwide has entered the postal account market with InvestDirect, an account that allows withdrawals to be made with a cash card - for a charge of 50p each.

The minimum deposit will be pounds 2,000 and there are five tiers of interest ranging from 5 per cent gross (3.75 net) on between pounds 2,000 and pounds 9,999 and 6.7 per cent gross (5.03 per cent net) on sums over pounds 100,000.

Details on Freephone 0800 665511.

----------------------------------------------------------------- SIX OF THE BEST ----------------------------------------------------------------- Savings ----------------------------------------------------------------- Type Account Term *0% *25% *40% Min GIB Financial Assurance 5 years 6.95 6.95 5.91 50,000 B Soc North of England Instant 7.50 5.63 4.50 25,000 Tessa Allied Trust Bank 5 years 8.10 8.10 8.10 9,000 *Compounded annual rate except for GIB (guaranteed income bond) ----------------------------------------------------------------- Source: Chase De Vere 071-404 5766 ----------------------------------------------------------------- Mortgages ----------------------------------------------------------------- Type Source Deal Variable Stroud & Swindon 5.49% - net of 2.5% discount Fixed Legal & General 7.49% on 75% loans for 4 years Capped Nationwide 7.85% on 85% advances for 3 years ----------------------------------------------------------------- Source: John Charcol 071-611 7000 -----------------------------------------------------------------