THE Yorkshire Building Society has launched a limited issue Three Year Stepped Rate Bond with a 6.25 per cent in year three, giving an average 5.42 per cent per annum.

The Yorkshire's bond which matures on February 1, 2005 offers fixed interest, which steps up on February 1, 2003 and 2004.

Annual interest:

* Year one - 4.75 per cent gross per annum/AER.

* Year two - 5.25 per cent gross per annum/AER.

* Year three - 6.25 per cent gross per annum/AER.

The minimum investment is £1,000 and a monthly income option is available. Iain Cornish, general manager at Yorkshire Building Society, said: "Feedback from our members shows there is currently demand for a medium term fixed rate bond. We offer the one year rollover bond for those wanting a short term fixed deal and this new three year bond complements our product range helping us to meet all our members' requirements."