Local stockbrokers, Redmayne-Bentley, announced today that it will be distributing the new stocks and shares ISA eligible, Provident Insurance plc seven per cent fixed rate corporate bond, giving investors a real rate of return on their floundering investments.
With high street banks and building societies offering little or no returns on savings, interest rates set to stay at 0.5 per cent until 2013 at the earliest according to economic commentators and the inflation rate still well above the governments’ target of two per cent, the five year fixed rate Bond will pay two semi-annual instalments in arreas in April and October each year.
Key Details:
• Minimum initial investment is £2000 and thereafter in increments of £100
• Interest paid in semi-annual instalments on 4th April and 4th October each year
• Investment to be paid back in full on 4th October 2017
• Applications close: Friday 30th March at 10am
Robert Hughes said, “With an interest rate of seven per cent, the Provident Insurance plc
Bond represents an excellent opportunity for investors looking to make a last minute addition to their ISA or SIPP before the end of the current tax year.
“Fixed and RPI-linked corporate bonds have proved to be very popular over the last 12 months with over £860m invested in bonds with Lloyds, National Grid, Provident, Tesco and Intermediate Capital Group so I’m sure there will be plenty of interest and demand may even lead to the deadline for applications being brought forward.”
The redemption value is designed to be at no less than face value (par). Investors who may wish to sell the bond before maturity should note that the market price of the corporate bond could fall below the face value during the life of the investment.
Furthermore, in the event that Provident Financial defaults or becomes insolvent, you may lose some or all of your investment (first payment 4th October 2012).
Full details of the new bond issue, including the prospectus, can be found at www.redmayne.co.uk/provident Investors can check the price of the bond at any time by contacting Redmayne-Bentley on 0800 496 5606.
Tax treatment depends on the specific circumstances of each individual and may be subject to change in the future.
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