# Bonds



## cabby (May 14, 2005)

Anyone else had emails about renewable energy Bonds giving between 8 and 12 percent return.


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## erneboy (Feb 8, 2007)

An annual return like that sounds like snake oil to me.

But over a longer term there's this: https://www.which-investment.co.uk/investment/renewable-energy-bond/

I'd be concerned that the bonds themselves may fall in value. You do get interest on the face value of bonds though.


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## jiwawa (Jun 22, 2007)

erneboy said:


> An annual return like that sounds like snake oil to me.
> 
> But over a longer term there's this: https://www.which-investment.co.uk/investment/renewable-energy-bond/
> 
> I'd be concerned that the bonds themselves may fall in value. You do get interest on the face value of bonds though.


Minimum investment £100,000. :-(


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## Mrplodd (Mar 4, 2008)

In all such cases I always revert to.....

"If it seems too good to be true, it probably is" 

I am not getting that level of return on my solar panels which I own outright so don't have ANY overheads or commission to pay 

Andy


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## fatbuddha (Aug 7, 2006)

wot Andy says. there are some investments out there - usually in peer-to-peer lending land - offering high returns above 10% but they usually come with a high risk factor, so if you're happy to risk some funds and keep your fingers crossed, then go for them. 

we have bonds offering 5% over 5 years but these are with not so high risk businesses (one is with Brewdog, the other with Harlequins Rugby) - there is still a risk but slightly more calculated than the 10% + brigade. with each we also get some other benefits such as reduced beer with Brewdog (on line and in their pubs), and ticket offers with Harlequins.


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## raynipper (Aug 4, 2008)

As soon as it was announced the UK interest rates 'might' go up my long term Lloyds High Income bonds dropped in value. So the capital is at risk.

Ray.


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## Mrplodd (Mar 4, 2008)

Surely Ray if the UK interest goes up then the return on bonds etc will also go up??

That's why the younger generation like a low interest rate because it makes their mortgage cheaper to service while the more senior members of society (i.e. us!) whinge because they get sod all return on their investments/savings. 

Andy


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## fatbuddha (Aug 7, 2006)

Mrplodd said:


> *Surely Ray if the UK interest goes up then the return on bonds etc will also go up??*
> 
> That's why the younger generation like a low interest rate because it makes their mortgage cheaper to service while the more senior members of society (i.e. us!) whinge because they get sod all return on their investments/savings.
> 
> Andy


not necessarily - depends on the bond. ours are corporate bonds i.e. tied to a business, and have a fixed interest rate for the duration with a guarantee on maturity that the whole capital investment is returned.


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## Mrplodd (Mar 4, 2008)

Don't let Barry see you using words like "corporate" and "bonds" he'll want you keel hauled!

Seriously thanks for information, I now understand your position. 

Andy


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## raynipper (Aug 4, 2008)

Mrplodd said:


> Surely Ray if the UK interest goes up then the return on bonds etc will also go up??
> That's why the younger generation like a low interest rate because it makes their mortgage cheaper to service while the more senior members of society (i.e. us!) whinge because they get sod all return on their investments/savings. Andy


As I understand it Andy. My high income bond is more attractive when rates are low. As soon as rates creep up people will be looking at putting their cash in interest bearing investments. Then of course my bond will become less attractive and the value will fall.

Ray.


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