Fixed Rate Bonds
Lock your money with fixed rate bonds for future savings
Most people in the UK are very concerned about their financial future. They are always seeking the best option to secure their savings for future earnings. The regular falling of interest rates and uncertainty in the economy is getting worse day by day. A Fixed Rate Bond is the best solution for those people who cannot take the risk of losing their money, and can’t afford the risk of a variable interest rate. This is a type of savings account, which runs for a set term and has a fixed interest rate as its name implies.
When you invest in this type of bond, your money will be locked for the set term and you cannot withdraw the amount during the term, if you do withdraw, there is a penalty set by the bond provider for you. However, the interest rate is very high for this type of bond, compared to the easy access bond. There is a certainty behind the investment, as you know how much you will obtain in returns and how long it will last.
Generally, investors can set the term between 1 year and 5 years to tie in their money. The interest rate increases with the time period for which you have locked your money. As mentioned above, if you access your money during the set term, then you will be charged a penalty and will lose the interest on your savings. So, it’s better not to touch your investment during the term.
If you are confident that you can tie your money into a savings account, then you can definitely opt for this bond. If you want to earn high interest, then investing your savings for the long term (5 years) is the better option. Don’t forget to compare the rates with several available bonds. If you want to put your money in this type of investment, then you should have a lump sum to invest (The minimum investment for this bond is about £1,000) and invest only if you are satisfied with the rate of returns.
Banks and building societies generally offer such bonds. They invest your money in several savings accounts and pay you the interest in return. If you have decided to lock your savings for a specific term, then you will have to confirm your decision to the issuer. The issuer also gives you the guarantee for the fixed interest rate, despite the possibility of a fall in the rates during the term.
Finding the best and most reliable issuer is an arduous job. Gather as much information about the bond issuer as you can and analyse his/her financial standings. Analyse the track record of the issuer to determine that the bond provider is really capable of providing the best fixed rate bonds. Don’t rely on the claims of bond issuers - analyse them, conduct proper research on their financial background, check the ratings, and then make your own decision.
If a bond is graded with AAA rating, it doesn’t necessarily mean it is the best option for you. It depends on your requirements, your level of risk tolerance, and perspective for looking towards interest rates. Read the terms and conditions carefully before investing money.
About Basset & Gold Plc
The world of online lending has quickly evolved with multiple forms of lending becoming available to both borrowers and investors. Peer to Peer, marketplace loans, property finance, invoice financing and factoring and many other forms of lending have now become available to everyday investors. This market has shown tremendous growth in the past five years, from almost zero in 2010 to £2.5 Billion in 2015, and is expected to continue its exponential growth.
On the one hand, this growth has brought in institutional investors with large sums of money, yet on the other hand this has made it more challenging for private investors to post high returns and gain investor security.
Basset & Gold was setup by a team of seasoned professionals with decades of experience in finance, in order to provide financing for online and peer to peer lending platforms and loans. We look to provide every day investors with the opportunity to take advantage of an offer that was previously available only to institutional and ultra-high net worth investors, and gain attractive returns from as little as £1,000 by purchasing the Basset & Gold bonds.