Bradford And Bingley Announces New Bond Yielding Around 7%
Even though the Bank of England has decided to keep interest rates at 5% for the moment, Bradford and Bingley has announced the launch of a new bond this week which will give investors around 7% gross. The bonds are available over 1 year, 2 year and 3 year durations and are currently the best on offer in the marketplace.
The minimum investment for these bonds is £1,000 and the maximum is £2 million, and there is sure to be great interest from consumers and investors alike. While the funds will be tied up for a minimum period, for those with spare cash to invest it may be worth taking a closer look at these bonds with many experts expecting the offer to close fairly soon.
While many may question why a bank would pay 2% over the current base rate, they need to look at the rates at which the bank is able to lend the money to customers. There is potential for a significant return and with money markets still struggling on the supply side, for many banks the bond markets may offer the only real alternative. The future availability of other similar offers will very much depend on how the money markets and UK economy fair over the coming months.
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