Granny Bond

A savings bond with an interest rate linked to an index such that the return stays ahead of inflation. This is useful for people on fixed incomes who otherwise might suffer from an inflation tax; that is, they may otherwise see their savings decrease in real value. It is available in the United Kingdom to people over retirement age.

References in periodicals archive

She has pounds 5000 in her five-year fixed-rate Granny Bonds and she gets pounds 18 a month interest.

THE SAVINGS DILEMMA; Are Premium Bond prizes a surefire winner or would it be wiser to invest elsewhere?

The public knew them as "granny bonds" because they were initially only available to pen- sioners - and the maximum you could invest was pounds 500.

ARE YOUR SAVINGS INFLATION BEATERS? The money you have put away could be falling in value. Here we see how you can keep your cash pumped up

I invested my redundancy money in Granny Bonds and, in those days, got about pounds 150 per month in interest.

Voice Of Scotland; WIDENING THE POVERTY GAP

NATIONAL SAVINGS Index-linked certificates (Granny Bonds) pay 2.5 per cent more than the rate of inflation over five years.

PROFITS OF BOOM; MILLENNIUM MONEY: Tying up in bonds can pay

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.