Post Office launches new bond

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Post Office launches new bond

Thu 26th Jun 2008

A new 7.05 per cent growth bond has been launched by the Post Office.

The new bond is recommended for savers wanting a guaranteed rate of return over a fixed period and available for a minimum investment of £500.

Such a minimum investment would be worth £535.25 in one year, not counting income tax deduction, while a £25,000 deposit would be worth £26,762.50, again without tax.

Richard Norman, director of savings, said it was a "fantastic opportunity for savers who do not need immediate access to their savings".

It is available online, by telephone and in Post Office branches.

The Sunday Herald in Scotland recently reported that investors were seeking a "safe haven" in bonds in Scotland due to turmoil in the stock market.

Harald Eggerstedt of Scottish bond specialist RIA Capital Markets, told the paper that trouble in equity markets for banks meant increased opportunity for financial corporate bonds.

Mr Eggerstedt added that the increase in the price range of bonds gives more opportunity for investors.

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