Bonds and rates

Several providers have recently launched guaranteed return products. And some are paying a surprisingly high level of guaranteed income such as the 10.25% rate on offer from Scottish Widows' Extra Income & Growth plan Isa. While providers are not allowed to use the word guaranteed, as the capital is not protected fully, the product does provide high income or capital growth levels. It also gives capital protection by investing in a basket of shares and the value of these shares has to fall by over 20% before you see a capital loss. But with an uncertain outlook for interest rates and th...