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This brief article
shows the various savings products on the market and
what is available. Prior to selecting any savings
product, conduct your own research and where necessary
obtain expert advise from an Independent Financial
Advisor.
Bristol &
West has launched a top-paying cash ISA savings
account. The account offers interest of 4.35%, which
is fixed for one year but savers must deposit the
full ISA limit of £3,000. Savers must also give 180
days notice to withdraw money or face losing 180-days
worth of interest. After one-year, savers are switched
to the bank’s standard ISA, which currently pays 3.75%,
although you could transfer to another provider. Call
0808 181 1111.
Legal &
General is offering to refund all charges for
2003 on its index tracking tax-free ISAs for fresh
investors depositing at least £500. The offer covers
eight funds that track the indices of different stock
markets – the L&G UK Index or Japan Index, for
example. It also runs a Global 100 Index, which follows
the world's biggest firms, and more specialist funds
that follow technology or health companies. A £7,000
investment could recoup between £35 and £70. The offers
also covers the L&G High Income fund, which currently
yields 8.5% a year. You can make extra lump sum investments
from £100 or monthly top ups of £10. Call 0800 0920092
or go to www.landg.com.
Northern Rock
has launched a 'special bond' for 2003. Interest is
paid at 4.4% for the first seven months and then it
switches to tracking the Bank of England base rate
minus 1%. The minimum deposit is £500 and withdrawals
in the initial period (minimum £250) are subject to
a charge of 30 days interest. After 1 August 2003,
seven days interest is charged on withdrawals unless
seven days notice is given.
Also launched
are three fixed rate savings bonds, paying 4% gross
over one year, 4.20% for two years or 4.40% for three
years. Interest can be paid either annually or monthly
and penalty free transfers are permitted from all
Northern Rock variable rate accounts. The minimum
investment is £500 and additional deposits of £500
can be made until the offer period ends, that is when
the offer is full to capacity. Accounts can be opened
either in a branch or by post.
For more information
call 0845 600 4466
Market Harborough
Building Society has launched a three-year fixed rate
investment bond* paying 4.6% a year or 4.45% gross
monthly on balances between £5,000 and £25,000. Once
the account is open no further deposits are allowed
and any withdrawals will incur a penalty of 90 days
gross interest. For an information pack call 01858
463244.
Cheshire
Building Society’s latest savings bond allows savers
to split their money between a fixed rate of 4.75%
gross and a variable rate which tracks at 0.5% above
base rate (currently 4%) for three years. Savers can
choose the how much of their deposits they put into
each portion of the bond, above a minimum of 25% into
each option. The minimum total investment is £1,000.
No withdrawals are permitted, nor are additional payments
into the bond. To find out more call 0845 755 0555.
Chelsea Building Society’s
step rate bond offers fixed interest which rises each
consecutive year for three years. In the first year
the rate will be fixed at 3.95% gross (3.16% net) until
10 November 2003. In the second year the rate will be
4.10% gross (3.28% net) and in the final year it will
be 5% gross (4% net). The maturity date is 10 November
2005. Payments will be made annually on 1 September
and interest can either be added to the fund or transferred
to another account. The minimum opening balance is £1,000,
but interest will be earned on all deposits over £1.
Withdrawals can be made at any time by cash or cheque
but will incur a 60 day loss of interest. For more information
call 01242 283593.
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