Beware Fixed Rate Bonds

Many clients have come to us lately asking about the wisdom of investing in fixed rate bonds.

With little or no interest being credited to our savings and deposit funds, the banks are actively marketing  2 yr 3 yr or even longer fixed rate bonds that tie your money up for this period.

Historically these types of investment could often allow you to get you money and you would be penalised interest for accessing it early, but access in a emergency was typically possible.

Following the credit crunch more products are out there where access is not possible under any circumstances. So beware!!

Another huge point to note is that higher interest rates will follow in the near future so these apparently attractive rates may well look poor value for money in the coming months. So think on.

There are potentially much higher gains to be had by investing in other assets classes such as stocks and shares and funds, if you are willing to take a longer term view and take some risk. 

So, consider carefully what is right for you and get advice if you are in any doubt. Give us a call and book in to see myself or John for a proper discussion on the matter. Remember, the initial consultation is free of charge and without obligation.