If you think that you need several years to get money back on your investment – think again. One-year bonds offer short-term investments, giving you more flexibility and control over your money and investment plans.
Something we have all learnt over the last couple of years of living in a pandemic is that a lot can happen in a year, and the investment world has quickly adapted to give intelligent investors more options to suit their needs and priorities.
The benefits of one-year bonds
1. Shorter Commitment
The shorter commitment and flexibility of a one-year bond are the most noticeable advantages of this type of investment. Many investors find this handy as it means your money isn’t tied in for the long haul, making it a great solution if you can’t afford to put your money away for a long time. Being repaid more quickly also opens more options with reinvesting.
2. Quick maturity
A long-term investment can come unpredictable economical falls and fluctuating interest rates, which can lead to a decrease in the bond’s value, but the quick maturity of a one-year bond can make it less sensitive to these changes, giving you more clarity on your returns. Covid-19 has presented even higher financial risks over the last couple of years and, as a result, uncertainty from investors, so a one-year bond is a way to grow your money with the assurance that you need.
3. Stable Returns
If your main goal is to know how much your money will grow, a one year fixed rate bond is a simple solution
The disadvantages of one-year bonds
Naturally, advantages come with disadvantages, and the potential benefits of a short-term investment comes at a cost. While a one-year bond may be one option, it’s also a low yield bond. With a long-term bond, you may see higher interest rates in exchange for locking in for a longer period, so this is more suitable for investors who want to maximise income and can afford to put their money away for a longer time.
One-year bonds with Propiteer Capital
At Propiteer Capital PLC, we’ve seen a rise in popularity across our short-term bonds as they give investors a convenient investment option with quick and transparent returns. If you have a lump sum and are unsure how to use it, or perhaps you’re saving for a down payment on a property or a wedding, our Short Term Saver offers a 4.75% pa fixed rate with exit options from 1 to 3 years, and for high net-worth and sophisticated investors you can get started with a minimum of £5,000.
Whether it’s the current financial climate that’s worrying you or if you simply want to cash in on a quick return, a one-year bond is an option worth exploring, or if you’re unsure, it’s always a good option to speak to an independent financial advisor.
To find out more about Propiteer Capital’s short-term bonds, get started here.
Rates are accurate at the date of publishing. For our latest rates, please visit our homepage.
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