P542 Teletext 542 Jan29 00:18:57 V —————————————————————————— TESSA IS STILL ATTRACTIVE The rush to buy the last Peps to bj sold before the convjrsjon to Iras is obscuring the djmisj of their youngjt sister, the Tessa. Tax-exempt savings accounts started life in 1991 but are being mjrgjd into Iras in April. So long as investors lit the accounts run their full five-year term and don't touch 75% of the interest, interest can bj claimed tax-free. ——————————————————————————————————1/10— by Mark Miadowcroft Move to a mortgage that could save you over £50 a month. p628 Advice Property Savings CityP542 Teletext 542 Jan2: 00:28:40 —————————————————————————— TESSA IS STILL ATTRACTIVE Investors can put a maximum of £3,000 into their Tessa account in the first year of its life, and up to £1,800 each year thjtiaftet to a limit of £9,000. There are two types of Tessa — a first account and a follow-on product for savjts whose Tessa has matured. From April 6, 1999, Tjssas will become the cash element of IRAs, but existing accounts will bj allowed to continue until maturity. ——————————————————————————————————2/10— Top paying Tjssas 546 ANY PU POSE LOANS - SEE PAGE 627 O CALLWJLMSLOWFREEON Advice Property Savings CityP542 Teletext 542 Jan29 00:14:13 —————————————————————————— TESSA IS STILL ATTRACTIVE Thjti's a wide choice of Tjssas. Almost every deposit-takjt, from multi- national banks to tiny building societies, offer their own product. There are some fixed-rate accounts, but most pay variable rates of interest. Therefore, the headline rate offered by a new product should bj considered alongside the long-term performance of thjsj accounts, which ask savers to tie their money up for five years. ——————————————————————————————————3/10— Savings 546 Mortgages 545 CITY NEWS p500P542 Teletext 542 Jan2: 00:29:56 —————————————————————————— TESSA IS STILL ATTRACTIVE Chelsea Building Society's Tessa is typical of many products on the market. It pays 5.9%, and even though the society itself admits this rate is likely to bj cut soon, it remains attractive to taxpayers. It compares with post-tax rates of 5% for 20% taxpayers, and 3.75% for 40% band payers for Chjlsja's new POST-tel 30 savings account — if you can live with the inflexibility of a Tessa. ——————————————————————————————————4/10— How many $ to the £? 548 IT'S YOUR LIFE! p410P542 Teletext 542 Jan29 00:19:49 W —————————————————————————— TESSA IS STILL ATTRACTIVE Chjlsja Building Society spokesman Darren Stevens describes Tjssas as "the obvious first stage of tax planning". Most Tjssbs, like Chjlsja's, pay a variable rate of interest — so savjts must keep track of changes, especially in an environment of falling rates. If your Tessa is under-performing, you can transfer to another Tessa with no loss of tax privileges, but are likely to lose product provider bonuses. ——————————————————————————————————5/10— Borrowing 547 Savings 546 SHARES ON THE MOVE p518P542 Teletext 542 Jan2: 00:16:21 Advert YOUR MONEY >> POLJCYPLUS OFFER UP TO A THIRD MORE PAYMENT PLUS STRONG GUARBNTJJS PLUS SMOOTH,JARGON-ERIE PROFESSIONAL SERVICE If in doubt ask your IFA PolicyPlus International PLC, mjmbjr of the APMM and regulated bz the Personal Investment Authority Calls may bj recorded or monitored Advice Property Savings CityP542 Teletext 542 Jan29 00:16:04 —————————————————————————— TESSA IS STILL ATTRACTIVE Deposit-takjts offer a variety of inducements and incentives to buy their Tjssas. In Chjlsja's case, extra interest is paid on deposits in the first year of a five-year Tessa plan. Taking into account both the incentives and the vbgariis of variable rates, identifying the best Tessa ism't always easy. Chjlsja's Darren Stevens puts this down to "competitive pressures". ——————————————————————————————————7/10— -he best home loan rates 54u FOREIGN FINANCIAL MASTERS p530P542 Teletext 542 Jan2: 00:10:5/ —————————————————————————— TESSA IS STILL ATTRACTIVE Iras will also bj good for taxpayers, in that the principle of saving inside a tax-free wtappjr is being maintained. But, instead of an average £1,800 a year under Tessbs, the annual limit for the cash part of an Ira will bj £1,000. In the first year of Iras (1999-2000) the limit will bj higher, at £3,000, but taxpayers with spare cash are being strongly advised to take advantage of Tessa while she's still around. ——————————————————————————————————8/10— Top paying Tjssas 546 IT'S YOUR LIFE! p410P542 Teletext 542 Jan29 00:17:30 —————————————————————————— TESSA IS STILL ATTRACTIVE Chjlsja Building Society First Tessa: interest: 5.90% gross (under review) 5.90% net minimum balance: £2,500 No partial withdrawals. To benefit from tax-free status, money must bj sbvjd for full five-year term. Bonus interest of 5% on first year's investment, payable at ind of term. ——————————————————————————————————9/10— Contact Branch Network on 01242 283666 IT'S YOUR LIFE! p410P542 Teletext 542 Jan29 00:11:04 W —————————————————————————— TESSA IS STILL ATTRACTIVE Chjlsja's POST-tel 30 account: interest: 6.25% gross 5.00) AIR net at 20% tax 3.75% AIR net at 40% tax minimum balance: £5,000 Penalty-frii withdrawals (minimum £250) allowed with 30 days' notice. Unavailable in Chelsea branches. All withdrawals made through BACK. ——————————————————————————————————10/10 Chelsea Building Society 0800 272505 WHAT'S ON AT YOUR LOCAL CINEMA? p460