Beat The Bank 🏦

Earn as if you're getting 9% interest from a savings account.

No risk of bank failures and no £85k FSCS max protection limit.

If you already know how this works and just want to know how to invest click here.

How does this work?

UK taxpayers pay income tax on the regular coupon payments they receive from the bond issuer, whether that be the UK government or a company. UK taxpayers are however exempt from paying any capital gains tax (CGT) on any uplift in price between the price they pay for the bond and the price at which they sell the bond (or at which the principal is repaid by the issuer).

If you are not sure how bonds, gilts, and corporate bonds work or what they even are, check out our Bonds Explainer.

For more about the various terms used when talking about bonds, you can refer to the UK Debt Managment Office's (DMO) Bond Glossary.

For a more rigorous explanation of Gross Equivalent Yield, please refer to this.

Example

The chart below compares the return from a regular savings account to a UK Governemnt Bond (gilt).

Note: The figure is not scale and for comparison purposes only.

How To Invest?

Traders at dozens of big banks quote prices for Gilts and/or corporate bonds. They only deal directly with large institutional investors such as insurance companies and pension funds.

If private investors want to buy bonds, the simplest way is for them to open an account with one of the low-cost stockbroker dealing platforms. We have reviewed a few of these to compare the services they offer to bond investors.

Notice: The below contain affiliate links.

Hargreaves Landsdown

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AJ Bell

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Interactive Investor

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About Us

Tariq Shaikh

Tariq Shaikh is a former bond-trader with 3 decades of experience as a market-maker, investor and portfolio adviser. Having led UK bond trading desks at UBS and Goldman Sachs, he now advises multinational law firms and family offices on a variety of capital market issues and investment strategies.

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Yajat Bansal

Yajat Bansal is a Quantitative Trader at DRW Trading Group, a diversified trading firm. He holds an MPhil in Finance from Cambridge University and a MSc in Mathematics from Oxford University. Previously, he interned at HM Treasury, the government's economic and finance ministry, and Susquehanna International Group.

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Get in touch

For further information and other general enquiries, please email us at info@investinginbonds.co.uk

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