Short term bonds

bww

Hi, 
Im looking for the best rates for savings over 2-4 years and I'm a bit confused about the pros and cons of short term bond funds, and if they typically offer better returns than savings accounts/ premium bonds.

many thanks.

83705628

bww said:

Hi, 
Im looking for the best rates for savings over 2-4 years and I'm a bit confused about the pros and cons of short term bond funds, and if they typically offer better returns than savings accounts/ premium bonds.

many thanks.

/
Are you talking about like a fixed saver bank account Or short term bonds that you buy via an investment account?
Example, NS&I income bonds (which is just a name for a savings account) pay 1.15% interest, the best fixed savings accounts go upto 1.4% (https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/)

Vanguard's global short term bond index fund (
https://www.vanguardinvestor.co.uk/investments/vanguard-global-short-term-bond-index-fund-gbp-hedged-acc/overview?intcmpgn=fixedincomeglobal_globalshorttermbondindexfund_fund_link) has a yield to maturity of 0.4%, and that's before costs.

So no, it's not worthwhile.

Albermarle

'Bonds' can mean many things , and the word is often used in scam offerings . So you need to be clear what exactly you mean .