S&S ISA, Can they beat 5.05% with no risk?

fimonkey

I have already used up my £3600 allowance in a cash ISA this year, I have another 'spare' £3600 in a savings account paying 6.5% Gross and I am a BR tax payer (so it pays 5.05% net).

I'm not likley to need this £3600 in the foreseeable future, and after April next year I can add £100 p.m.

I am risk averse (on a scale of 1-5, 1 being no risk, I would choose 1).

1. Are there any 'safe' investments I can throw £3600 at whereby the return p.a would beat 5.05%?

2. Can 'guaranteed bonds' go into an S&S ISA? (I remember a discussion a while back about when bond was not a bond, but can't remember what this pertained to).

Thanks in advance

comdw

I didn't think it was possible to have anything in S&S ISA that's zero risk. I'm always interested to hear the lowest risk options available though as I'm using both cash ISA and S&S ISA to save for a house deposit. Bond funds are low risk but have had returns lower than cash ISA (or even standard savings after tax) rates of late.

nicko33

comdw wrote: »

I didn't think it was possible to have anything in S&S ISA that's zero risk.

GILTS ?
Direct holding rather than a fund of.

edit:
dunno about beating 5% that way though