Yorkshire in the mail

YORKSHIRE Building Society is entering the postal account market with a highly competitive arrangement called First Class Return.

This tiered instant access account offers rates up to 8.6 per cent (including a 10 per cent bonus if no withdrawals other than interest are made each year). Current rates of return, including the bonus, are: 7.2 per cent on the minimum pounds 2,000 deposit; 7.6 on pounds 10,000; 8.1 on pounds 25,000; 8.35 on pounds 50,000; and 8.6 on pounds 100,000. These rates are guaranteed until the start of July.

Birmingham Midshires Building Society has launched a 7.25 per cent fixed-rate Tessa called Quantum Fixed. Savers invest a lump sum of pounds 8,400, pounds 3,000 of which goes immediately into the Tessa, and the balance into a feeder account that generates the final pounds 600, to make up the maximum Tessa investment of pounds 9,000. At the end of the five- year investment period savers will get back pounds 11,857.