The one-year bond pays between 2.5pc and 3.2pc depending on whether you save £500 or £25,000.

The remaining $520 million one-year bond issue due May 1, 1991, was given a rate of 8.70 percent.

And $645 million of one-year bonds due Feb. 1, 1991, are priced to yield 8.20 percent.

The one-year bond pays a competitive 3.35pc and allows you unlimited access to up to 25pc of the initial deposit.

The remaining $500 million worth of one-year bonds, due on April 1, 1991, was priced to yield 8.50 percent.

The remaining $530 million issue of one-year bonds was given a rate of 8.625 percent.

Investors will be encouraged to trade one-year bonds for 5- and 10-year obligations.

However, some one-year municipal bonds yield as little as about 3.25 percent.

It sold €8.5bn of one-year bonds at a rate of 2.735pc - remarkable considering that a similar sale in December cost them 5.952pc.

For one-year bonds due Nov. 11, 1989, the interest rate is 8.45 percent.