The Bank of England's 0.25% base rate cut last week looks certain to keep downward pressure on gu...
The Bank of England's 0.25% base rate cut last week looks certain to keep downward pressure on guaranteed income bonds. Interest rates offered by the bonds have dropped significantly in recent weeks, as the underlying investments used to provide set levels of growth have become more expensive. Baronworth Investment Services' survey of guaranteed bond rates dated 5 February shows many of the best annual rates available have fallen considerably since the previous week. In the five-year bond category, for example, the best rate available for a £40,000 investment is 3.5%, down fro...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes