Bond guarantees income up to 10%

Friday 08 July 1994 23:02 BST
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A FIVE-YEAR investment bond launched by N&P Life guarantees monthly income of up to 10 per cent.

Linked to the FT-SE 100 share index, it guarantees to repay a minimum of 50 per cent of savings at the end of the period. If the index rises by at least 35 per cent all the original capital will be returned.

Woolwich Building Society has a three-year investment bond paying annual interest of 7.85 per cent gross. No withdrawals can be made.

Co-operative Bank has a four-year Guaranteed Income Bond, paying 7.25 per cent net for basic taxpayers and issued by Consolidated Life Assurance.

For savings above pounds 15,000, Prosperity Financial Services still offers 8 per cent net on its five-year income bond a commission-sharing agreement with Baronworth Investment Services in Essex.

----------------------------------------------------------------- SIX OF THE BEST ----------------------------------------------------------------- Savings Type Account Term *0% *25% *40% Min GIB Eurolife 5 years 7.75 7.75 6.59 pounds 10,000 B Soc Nottingham Instant 6.60 4.95 3.96 pounds 25,000 Tessa Market Harborough 5 years 7.60 7.60 7.60 pounds 9,000 ----------------------------------------------------------------- *Compounded annual rate except for GIB (guaranteed income bond) ----------------------------------------------------------------- Source: Chase De Vere 071-404 5766 ----------------------------------------------------------------- Mortgages Type Source Deal ----------------------------------------------------------------- Variable Northern Rock* 2.49% discounted rate on 90% loans Fixed Alliance & Leicester 8.49% for 5 years on 90% loans fee 0.5% (max pounds 300) Capped Royal Bank of Scotland 8.99% for 5 yrs on 95% loans ----------------------------------------------------------------- *Arrangement fee of pounds 195. Cashback pounds 500 Household insurance through Northern Rock or rate 0.25 per cent higher. ----------------------------------------------------------------- Source :John Charcol 071-611 7000 -----------------------------------------------------------------

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