Lump sum investments: Yes
Regular premiums allowed: No
Flexible payments allowed (stop/start/additional/increase/decrease): No
Investment Risk Profiles Available:
Changing funds and risk profile allowed: No
Moving to another company allowed: No
Life Insurance Included: No
Personal Tax Benefits:
Can be held inside Trust: Yes
Insolvency Compensation Limits:
Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security
Gilts are "Gilt Edged British Government Securities". They are so called this because they have the 'gilt edged' backing of the British Government. When you purchase a Gilt you are literally lending some of your money to the Government for a given return. You have effectively bought shares in Britain.
You can invest in gilts directly or you can invest in Gilt funds as part of an investment policy. We suggest you look for fund names such as fixed interest fund and gilt fund.
Types and categories of Gilt
Gilts are investments provided by the Government when they want to borrow money. If you buy a Gilt you will receive a fixed rate of interest for the rest of its life and then the original capital back at its redemption date.
Gilts are classed as one of the safest types of investment as they are backed by the Government.
If you buy a Gilt you cannot cash it in but you can sell it on the Stock Market. Prices for buying and selling Gilts change on a daily basis but there are generally lots of dealers wanting to buy and sell. Remember, you may get more or less than what you paid for it, depending on demand.
Gilt prices change because people buying them change their views about interest rates. For example:
There are five types of Gilt:
These five types of Gilt can be split into three interest rate incomes, known as coupons, categories:
Request our expert advice or visit our Investment Shop and choose your own investment.