Search Best investments compare safe fixed rate investments that beat inflation

April 14 00:45 2022

Search Best Investments find the best fixed rate bonds for investors that beats inflation.

Protecting against inflation is the top priority for investors. And sometimes the best defense is a strong offense…

Fixed rate bonds and Gilts are the safest way for investors to keep there money working for them.

What are fixed rate bonds?

A fixed rate bond is a type of savings account that lets you put your money away for a set period of time in return for a fixed amount of interest on your cash. By financial definition you are actually loaning your money to a bank and they are paying you back the original amount plus any interest earned on the dates set out on the terms and conditions. As a fixed rate bond is a type of savings account, the Financial Services Compensation Scheme (FSCS) will cover up to £85,000.00 of your deposit or £170,000.00 per joint account on any UK bank or building society deposits. In case the bank goes out of business, the FSCS will also cover the interest you’ve earned up until that point as well, provided the total invested amount in the account is still under the £85,000.00 limit or £170,000.00 per joint account.

How do fixed rate bonds work?

Fixed rate bonds are available with different terms. In general, the longer the term, the higher the interest rate. Most fixed rate bonds require a minimum deposit to open the account. Unlike many other savings accounts, you are usually only allowed to pay in once, which is when you open the account. Providers of fixed rate bonds may give you the option to have earned interest paid out either bi-annually or annually. Most bonds require you to lock away your money for a set period of time, however some bonds offer an “easy access” option which allows you to access your capital at any time by giving notice and paying a liquidation fee. With fixed rate bonds, the “term” is the amount of time you choose to lock your money away for, i.e. 1 year or 2 years.

Can the interest rate change on a fixed rate bond?

No, the interest rate is fixed until your account matures.

What are Gilts?

A Gilt is a bond issued by the UK Government. It’s one of the many ways the HM Treasury generates annual revenue. The benefit of a gilt is unlike a corporate bond, the full value of the bond issue is guaranteed by the HM treasury. So if you were to invest up to £5,000,000,00 in UK Treasury Gilts for example; the full value of your capital is guaranteed, unlike a bank based bond that5 only has a protection limit of £85,000.00.

What are the benefits of a Gilt?

The benefit of owning a Gilt is that investors know with certainty how much interest they will earn and for how long. If you are interested in safely investing a lump sum, a bonus from work, proceeds of a house sale or even an inheritance, then a Gilt is likely to be your best bet.

How do Gilts work?

In general, the longer the term, the higher the interest rate. Most Gilts require a minimum deposit to open the account. Unlike many other savings accounts, you are usually only allowed to pay in once, which is when you open the account. The HM Treasury gives you the option to have earned interest paid out either bi-annually or annually. Most Gilts require you to lock away your money for a set period of time, however some companies offer an “easy access” option which allows you to access your capital at any time by giving notice and paying a liquidation fee.

Can the interest rate change on a Gilt?

No, the interest rate is fixed until your account matures…

In summery taking advantage of short term fixed returns can most certainly provide stability to your portfolio whilst paying you a regular income. The team of investment professionals at searchbestinvestments.com, can guide you through the various options available, ensuring your investment gives you the best returns possible.

Have a look at what they have on offer at www.searchbestinvestments.com

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Company Name: Search Best Investments
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Country: United Kingdom
Website: www.searchbestinvestments.com

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