If you are searching for an investment plan, which is protected from the risk of drowning your hard-earned money, then you should look for Fixed Term Bonds. This is a type of bond that can help you by providing a fixed amount of return on your investment. To benefit from this type of bond you need to invest your money for a set time period.
This is the best product available for a risk-free investment which is provided by banks, building societies, and financial firms. When you invest your savings in this type of bond, you are restricted to keeping your money locked for the set time period for which you have applied. If you have a lump sum and the means to keep your money away for a year or two, then you can make this bond product your choice for a risk-free investment.
The fixed amount of interest makes this product secure from the effects of inflation. Your return is fixed for the term you have invested your money, despite any changes in the bond rates. This fixed rate of interest also allows you to calculate what your total earnings will be for the term. This guarantee and secure approach make this bond best suitable for retirees.
If you are nearing retirement and looking for an investment plan which can supplement your income, offering fixed returns every month, then you should start searching for the best Fixed Rate Bonds. In this bond, the longer you tie your money, the higher returns will be paid by the bond issuer. If you invest for three years, then your interest rate will be higher, rather than the one or two year fixed rate bonds. If you want, you can reinvest your earnings for further savings, hence, it is labeled as a type of savings account.
Overall, this bond product helps people in planning for their retirement age, when a pension is not sufficient to make ends meet. Do remember one thing- never forget to read the policy and terms & conditions of the bond issuer company before applying for any of the investment products.