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  • Fixed Income

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    Now, what will you invest in?

Fixed income selector

Sometimes called bonds, or gilts, fixed income assets pay a set rate of return over a fixed period of time.

If you are confident with these investments you might want to jump straight into the fixed income selector tool below and start researching the details.  If you’re unsure about fixed income or would just like to find out a bit more, scroll down for help and information.

 

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  • Fixed income selector

How does fixed income work?

Not to be confused with savings bonds, fixed income bonds are a way for governments or companies to raise money. They effectively work in the same way as an IOU. When you buy a bond, you are lending a company or a government some money, for a fixed period of time, in exchange for a set percentage of return. They also have the added security of receiving the original issued value of the investment when it reaches maturity, or if the issuer repays earlier.

They are traded on the stock market, which means their price can go up and down. The riskier a government or company you are lending to, the higher the return rate will be because of the perceived increased risk that they might go bust and not be able to pay you back.

When investing becomes lending

Fixed income investors lend money to companies or governments in return for interest, also known as yield.

 

 

Why invest in fixed income investments?

See how fixed income is just one way to generate income from your investments.

There are a number of ways to generate an income from your investments, and fixed income is just one of them.

  • Typically lower risk than other asset classes because, unless the issuer of the debt defaults, you will receive the original issued value of the investment when it reaches maturity, or if the issuer repays earlier
  • Exempt from Stamp Duty Reserve Tax
  • Security of knowing what return you’ll get over a set period
  • You are not tied in and can sell the investment at any time during the set period

Get started

You can invest in your chosen fixed income investment through any one of our three account options:

Dealing Account

Access a wide range of global investments in this flexible, unrestricted account.

Find out more

Stocks and Shares ISA

Take advantage of tax free investing with our Stocks and Shares ISA today.

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Self-Invested Personal Pension (SIPP)

From great value to best-in-class, access the SIPP to suit your needs through our extensive network of providers.

Find out more

How do I decide what to invest in?

There are many different ways to invest in fixed income products - we have detailed them below:

Government Bond (Gilts)

Fixed-interest securities issued by a government

Permanent Interest Bearing Shares (PIBS)

Fixed-interest securities issued by a building society

Exchange Traded Funds (ETFs)

Another convenient and flexible way of gaining exposure to the bond market

Convertible Bonds

Similar to a corporate bond but with the option to convert into shares or cash of equal value

Corporate Bond

Fixed-interest securities issued by a corporation

Mutual Funds

A convenient way of gaining exposure to the bond market

I've still got questions!

Our experts are on hand to help at our UK based Contact Centre on 0345 0700 720