With the dust settling on the March 2016 UK budget, investment specialists Shenton International have reported an upswing in interest for bonds as an option for intelligent savers.
The ‘savings shamble’ has already seen available rates in the UK plummet and the Office for Budget Responsibility report that the outlook has changed ‘significantly’ over the past few months.
The French-owned RCI bank is the latest to cut its rates, with its top easy-access account dropping to just 1.45% p.a. It follows cuts by a wide range of other financial institutions, with further declines almost certain in the coming months.
The changes have led to savers looking elsewhere for sound investment options that offer a decent return and bonds have proven to be a welcome relief to many.
Andrew Thompson, Managing Director of Shenton International, explains,
“Long-suffering savers really are fed up of facing cut after cut to European interest rates. Quite simply, savings accounts can’t offer rates that make using them worthwhile. Savers are finding that the cost of living increases and low interest rates mean that their money is worth less in real terms after a year in a savings account than it was when they first deposited it."
“It’s only natural that savers are looking for more intelligent ways to make their money work for them and that’s why we’re seeing a resurgence of the bond as an investment vehicle.”
Shenton International’s two year fixed rate asset-backed mini bond is precisely what savers are looking for as a route out of the savings shamble and back into an environment offering stable investment opportunities with healthy returns. At 9% p.a. with interest paid quarterly the bond is an attractive option, generating some 45% more interest than many of the big banks’ best offerings.
The Shenton International mini bond is open to investors until 29 April. Those investing before 31 March 2016 are eligible for the early investor offer, with an additional interest payment accruing from the day the investment is accepted.
With no happy news in sight for savings accounts, it’s no wonder that the bond is being welcomed with open arms by investors.
For more information please contact Shenton International on 0207 243 2000 or email@example.com.