Rates of up to 5.17% are still available on some guaranteed income bonds
Rates on guaranteed income bonds have held up well, despite last week's interest rate cut.
Investors with large sums to invest can still receive rates of up to 5.17% per year, net of basic rate tax, according to Baronworth Investment Services' most recent survey of rates.
Countrywide Assured re-entered the guaranteed income bond market on Tuesday 18 September after suspending the taking of new business in light of events in the US.
Colin Jackson, a director of Baronworth Investment Services, said he was glad Countrywide Assured had re-entered the market as he had been concerned about the impact diminished levels of competition may have had on rates.
He said: 'It had no impact at all on annual guaranteed income bond rates, although Countrywide Assured is offering the best monthly income bond rates for four years on sums of £20,000-£24,999, and on five years for those with £20,000-£39,999 to invest.'
Pinnacle Insurance continues to dominate the best-buy list for annual guaranteed income bond rates. It provides the best rates on all annual three, four and five year bonds, regardless of how much is invested.
AIG offers the best rates on two-year annual guaranteed income bonds, while best buy rates on one-year annual bonds are split between the two.
The group also has the best rates on one, two and three-year monthly guaranteed income bonds across all investment ranges, as well as the majority of four and five-year dated monthly products, except for the two offered by Countrywide Assured.
Claim from SocGen's global markets division
Third annual Hampton-Alexander review
European Commission yields to pressure
Numbers in Adviserland
Retirement sector trends