Are you over 65? Are you fed-up with getting a low rate of interest on your cash deposits? If so, the Government are about to help you.
The details will be announced in the Autumn Statement on 3 December, but the expectation is that anyone over 65 will be able to invest £20,000 in new Government backed bonds. Of that £10,000 will be a one year bond expected to pay 2.8% interest. The second bond will not mature for three years, but will pay 4% per annum.
These interest rates are much higher than the Government has been paying historically. Even if interest rates rise next year (as some are predicting) the returns could well be higher than you would get on a conventional deposit account.
The problem is that the Government is limiting the amount of money it will raise in this way. Only one million bonds will be issued and this will be on a first come first served basis.
Clients should seek independent financial advice before investing if they wish to do so. However, making sure the cash is ready as soon as possible in the New Year is a sensible step for those who are interested in making an investment.
If you require further information about this topic or any other estate planning issue, please contact a member of the Edwin Coe Private Client team.
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