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.
Share this..
Related stories
Compensation savings limit 'to be raised'
Savers are to have £50,000 of their deposits guaranteed by the government from next Tuesday.The move, raising the limit from its current £35,000, was announced by the Financial Services Authority (FSA) today.In a statement, the regulator added that the authorities will do "whatever is necessary" to protect savers at a time of highly unstable market conditions. The nationalisations of Northern Ro...
Read MoreSellers 'could save thousands' online
It was reported yesterday that the new trend for selling houses without the assistance of an estate agent can be more profitable than was first imagined - thanks to the increasing use of the Internet in property sales. There is the potential for users 'going it alone' to save thousands on agency fees if they act through a neutral property website instead of relying on an estate agency. It is thoug...
Read MoreDoes Alistair Darling want to come clean over spending cuts?
There is growing pressure on Alistair Darling today to step forward with a definitive plan for the reduction of the UK budget deficit which is forecast to be around £175 billion from the tax year 2009/10. There is also a growing belief that Alistair Darling wants to step forward with detailed plans, some of which will not be attractive to UK voters, but he has been stopped in his tracks by the Pr...
Read MoreUK petrol prices could rise 15p a litre in 2010
The Petrol Retailers Association has set the cat amongst the pigeons with a suggestion that UK petrol could rise by up to 15p a litre purely and simply because of tax changes and a continuing upward trend in the price of oil. Aside from the fact that the VAT has now returned back to 17.5% there is further speculation we could see an increase to 20% after the election. The government is also set to...
Read MoreIs The Bank OF England At War With The Treasury?
The last few months has seen some of the more turbulent times in the history of the Bank of England but it seems that there may be more trouble ahead for Mervyn King and his colleagues. The Treasury has been very aggressive over the last few weeks in their pursuit of further power and influence over the Bank of England, opting to blame the Bank for the Northern Rock debacle and use this to open t...
Read More