Rising interest rate expectations are making guaranteed income bonds with a life of four or more yea...
Rising interest rate expectations are making guaranteed income bonds with a life of four or more years look unattractive to investors, writes Robert Stock.
Income bond specialists Baronworth Investment Services, said the best rates available are on three year bonds.
In three year bonds, paying out on an annual basis, Countrywide Assured offers the best rates across the various investment tiers.
The group features interest rates of 4.90% on sums of £3,000 to £4,999, moving up to a rate of 5.85% on sums of £50,000 and above.
Paul Fuller of Baronworth (Investment Services), said: "At this moment of time none of our clients are going longer than three years.
"The majority of money is going in for one or two years because there is obvious caution that interest rates are going to creep up."
Rates on five year bonds, on an annual payment basis, range from 3.70% from Pinnacle Insurance for sums of £3,000 to £4,999 to a rate of 5.70% on offer from Countrywide for sums above £50,000.
For monthly payments of interest in three year bonds, AIG offers 5.46% for investment amounts between £15,000-£19,999.
Countrywide Assured offers the best rates at 5.40% in this sector for investments between £5,000 to £14,999.
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