At a time when everybody is looking to maximise the value of their own funds, it would be easy to forget that low interest rates have an effect on businesses as well.
There is hope that rates will increase in the first or second quarter of 2010, but until then short term business bonds represent a good place for organisations and charities to place their money.
As with personal bonds, such accounts offer a guaranteed return on funds, as long investors adhere to the terms and conditions. A good example of such a product can be found below.
Bath BS – Business Direct Bond
Bath BS has launched a market leading six month bond which should prove excellent news for businesses and charities looking for a short term home for their funds.
Its Business Direct Bond Issue 1 is a six month fixed term account with a minimum investment of £25,000 paying 2.70 per cent on maturity, when it will transfer to a Business Direct account.
There is a minimum operating balance, also set at £25,000, and a maximum investment level of £250,000.
Investors should be sure they can afford to commit the funds as no early access or withdrawals are permitted, but the short term nature of the bond should ensure a steady take up of what is the leading available rate in the six month category.
To find out more information about the Bath Business Direct Bond specifically click here
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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