A good return from Templeton Life

PROSPERITY Life, the Municipal Mutual subsidiary, is offering a 7.5 per cent gross return on its guaranteed income bond. But higher returns from Financial Assurance, combined with Municipal's current problems, should encourage savers to look elsewhere. The best return on a five-year bond in which only pounds 2,000 is invested is 7.5 per cent gross from Templeton Life. Financial Assurance and Alico are both offering 6.6 per cent on a one-year pounds 3,000 investment.

For savers who do not need to make withdrawals before January 1995, Chelsea Building Society has relaunched its premier account (5th issue), offering a 10.75 per cent gross return on investments of pounds 10,000 or more, fixed until February next year. Withdrawals made before 1995 will require 30 days' notice, during which no interest will accrue. Savers who might need to make withdrawals before 1995 would be better with the Bristol & West postal account. SUN ALLIANCE Mortgages is offering an 8.2 per cent mortgage fixed until 1 October 1994. That might appear more attractive than the Cheltenham & Gloucester fixed mortgage, but - unlike the C&G offer - the Sun Alliance mortgage is not available on repayment mortgages.

The Sun Alliance rate is effectively fixed for less than two years. Both mortgages incur an arrangement fee of pounds 100.

Abbey National has launched a two-year fixed rate of 8.49 per cent with no compulsory insurance and a pounds 250 fee.