Britannia comeback

BRITANNIA Building Society is bringing back its index- linked account, which pays 4 per cent gross above the rate of inflation of about 2.5 per cent. It also offers a two-year investment bond paying gross interest of 7 per cent and a five-year bond at 8.25 per cent gross.

Abbey National is cutting rates on high yield bonds and regular saver accounts. Bond rates move from 7 to 6.85 per cent gross on amounts above pounds 25,000, savers rates to 6.8 from 7 per cent.

----------------------------------------------------------------- SIX OF THE BEST ----------------------------------------------------------------- Savings Type Account Term 0% 25% 40% Min GIB Consolidated Life 7 years 6.90 6.90 5.87 pounds 2,000 B Soc Northern Rock Instant 6.75 5.06 4.05 pounds 25,000 Tessa Hinkley & Rugby 5 years 7.35 7.36 7.36 pounds 3,000 ----------------------------------------------------------------- Compounded annual rate except for GIB (guaranteed income bond) ----------------------------------------------------------------- Source: Chase De Vere 071-404 5766 ----------------------------------------------------------------- Mortgages Type Source Deal ----------------------------------------------------------------- Variable Northern Rock* 2.99% discounted rate on 90% loans Fixed Woolwich 7.99% 5yrs on 95% loans Capped Royal Bank of Scotland 8.49% 5yrs on 95% loans ----------------------------------------------------------------- *Arrangement fee of pounds 150. Household insurance through Northern Rock. ----------------------------------------------------------------- Source: John Charcol 071-611 7000 -----------------------------------------------------------------