Bond rates up further

Friday 10 June 1994 23:02 BST
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The upward movement in long-term guaranteed bond rates continued this week with an announcement by General Portfolio that it is to increase three and five-year rates by 0.2 per cent.

The highest rate is now 7.1 per cent net for five-year savings above pounds 50,000. This is the equivalent of 9.46 per cent gross of basic tax. The three-year rate stands at 6.5 per cent net, up from 6.3 per cent.

Chelsea Building Society has launched a five-year fixed bond, offering 9 per cent gross on savings above pounds 10,000. No capital withdrawals are allowed once an account is opened.

Portman Building Society has refined its Step-Up bond to allow the payment of income monthly without any cut in guaranteed annual rates of return, which start at 6 per cent in year one and rise to 10 per cent in year five.

/ET

SIX OF THE BEST

Savings

Type Account Term *0% *25% *40% Min

GIB Chase de Vere 5 years 7.61 7.61 6.47 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* 2.94% discounted rate on 90% loans

Fixed First Mortgage Securities 7.85% for 4.5 yrs on 75% loans

Capped Royal Bank of Scotland 8.99% for 5 yrs on 95% loans

*Arrangement fee of pounds 150. Household insurance through Northern Rock.

Source :John Charcol 071-611 7000

/ET

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