Guaranteed income still best

Guaranteed income bonds continue to offer far better rates than National Savings Pensioners bonds. Research by specialists Baronsworth has found that for a £15,000 investment on a one-year term, National Savings would provide 4.8% gross, 3.84% net of basic rate tax, while AIG's equivalent Monthly Income Bond would provide 5.19% gross, equivalent to 4.15% net. This gap is also evident over longer time periods. National Savings offers 4.9% gross over a two-year term, compared with 5.54% gross for AIG. Over five years, the figures are 5% and 5.86% respectively. Colin Jackson...