There are a number of schemes that offer a secure means of saving but returns may be disappointing. For example, the Investment Account is similar to those provided by banks and building societies. Whilst the interest rate offered is competitive with high street bank or building society accounts it does not compare favourably with rates available on the telephone or internet accounts. Equally, Income Bonds provide a monthly income savings option but offer an interest rate that is below rates available on instant access telephone or interest accounts offered by the banks or building societies.
Capital secure growth options are available with Savings Certificates or Index Linked Certificates but returns are likely to be modest unless there is a period of high inflation in the economy.
Posted in: Investments
