Step on escalator

BRITANNIA International, the offshore arm of Britannia Building Society, has launched a one-year bond paying 6.5 per cent gross.

It also has a two-year bond offering 7 per cent gross and a three-year bond at 8.25 per cent gross.

Bank of Scotland has entered the escalator bond market with a five-year stepped product offering 6.75 per cent gross in year one, rising to 10.5 per cent in year five. The average rate over the five years is 8.5 per cent.

Chelsea Building Society is launching its own three-year fixed interest bond, paying 7.75 per cent gross on investments over pounds 10,000. No withdrawals are allowed throughout that period.

Allied Trust Bank is offering a monthly income option paying 6.35 per cent gross on sums invested with a four- month notice period. The rate drops to 5.7 per cent gross for three-months' notice.