Pibs lock into higher returns

Click to follow
The Independent Online
INVESTORS worried about dwindling incomes because of falling interest rates are being offered two schemes investing in building societies' Permanent Interest Bearing Shares (Pibs). Pibs pay a fixed rate of interest, which is currently 2 per cent better than gilts - which they resemble - and the building societies' own deposit accounts. Pibs have no redemption date. To get your money back you have to sell them on the stock market.

Last week an investment in the new Johnson Fry Portfolio would have locked into a fixed rate of 11.42 per cent a year from a basket of Pibs.

The minimum investment is pounds 20,000. Johnson Fry is availabale on 071 321 0220.

Exeter Fund Managers has a new unit trust, ExBAL, investing primarily in Pibs issued by several building societies. ExBAL's minimum is only pounds 750.

Exeter is on 0392 412144.

Looking for credit card or current account deals? Search here

Comments