Vernon has top rate

EXETER Bank's high-paying Tessa account will cuts its rate from 11.73 to 11.46 per cent on Monday. The minimum deposit is pounds 250. This leaves Vernon Building Society's Tessa looking attractive with a rate of 11.7 per cent on an initial deposit of pounds 250. This is the highest available at present on a Tessa without early transfer penalties.

The Britannia Building Society pays 10.25 per cent fixed for five years but the initial deposit is 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.

Aegon Life's guaranteed income bond pays 8.55 per cent to basic-rate taxpayers who can put away pounds 50,000 for four years.

Prosperity pays 8.25 per cent on a minimum of pounds 15,000 or 8.3 per cent on a minimum of pounds 25,000 over three years.

------------------------------------------------------------------------ SIX OF THE BEST Savings ------------------------------------------------------------------------ Type Account Term *0% *25% *40% Min ------------------------------------------------------------------------ GIB Aegon Life 4 years 8.55 8.55 7.27 pounds 50K B Soc Scarborough Instant 10.4 7.8 6.24 pounds 1,000 Tessa Vernon BS 5 yrs 11.70. 11.70 11.70 pounds 250 ------------------------------------------------------------------------ *Compounded annual rate except for GIB - guaranteed income bond Source: Chase De Vere 071-404 5766 ------------------------------------------------------------------------