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 from the best of 3.9% offered by Pinnacle in the figures dated 29 January.
In two-year bonds, the best rate currently offered for a £30,000 plus investment is 3.4% from Swiss Life, down from 3.58% available from Pinnacle the previous week.
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