Savings accounts, PEPS and ISAs Local Authority Bonds

Many local authorities raise money by inviting the public to lend to them and offering good rates of interest. However, the money is normally tied up for the whole period of the loan, usually between one and ten years, though some shorter term investments are possible.

You can obtain the best current rates over the telephone from Sterling Brokers on 0208.807 8767, or they will send you a comprehensive list of all local authority investment offers if you send £8.9 0 to them at Colechurch House, 1 London Bridge Walk, London SE1 8SS. If you want to invest in the current best offer over the telephone, they will give you the contact number at the relevant local authority.

The interest is paid net of basic rate tax as with a building society account. This type of investment is best suited to basic rate taxpayers who can tie up some money for a fixed period of time.

More information

Savings accounts, PEPS and The Stock Market

All the investments referred to above are safe. You cannot lose your capital. The same is True of putting your money in a bank or building society. Returns are not spectacular, but you take no real risk with your hard earned cash. The stock market is different. Your capital is always at risk. Your investment of 1000 could be worth nothing in a year's time or it could be worth 10000 The stock market crash of October 2007 has shown people how dangerous investing in it can be. The value of shares of many sound companies fell by half overnight. Investing in shares yourself is a gamble and, if you are going to make a consistently good return on your money, it is a very time consuming hobby. But . . . ... see: Savings accounts, PEPS and The Stock Market