Vernon gives best value in Tessas

THE BEST buy in Tessas comes from the Vernon Building Society, which is offering a rate of 11.7 per cent variable for five years, for an initial deposit of pounds 250.

You can still get 11.73 per cent from Exeter Bank for a minimum deposit of pounds 250, but the rate will drop to 11.46 per cent on 13 July. The Britannia Building Society pays 10.25 per cent fixed for five years for an initial deposit of pounds 8,250.

The Allied Trust Bank is still offering 12.68 per cent if you can put pounds 9,000 into a feeder account, but the rates are variable.

Liberty Life's guaranteed income bond pays 8.4 per cent to basic rate taxpayers who can put away pounds 25,000 for three years, the best buy in the guaranteed-income bond market.

Financial Assurance requires a minimum of pounds 5,000 and pays 8.3 per cent on two-year bonds, or 8.25 per cent on four-year bonds.

The Scarborough is still offering the top rate on an instant access postal account, with 7.8 per cent gross for a minimum deposit of pounds 1,000, while the Cheltenham & Gloucester postal London share account pays 10.4 per cent gross for a minimum deposit of pounds 2,500.