Purchasing Government Bonds

colly10

My mam is looking at saving a lump sum over the next 5 years and was thinking about investing in low risk funds. She can't really afford to loose it but savings accounts offer nothing at the moment
I was told Irish government bonds give 5%, is this true, is sounds very good, struggle to get my head around this stuff and wonder if im missing something?

BrokenArrows

colly10 wrote: »

My mam is looking at saving a lump sum over the next 5 years and was thinking about investing in low risk funds. She can't really afford to loose it but savings accounts offer nothing at the moment
I was told Irish government bonds give 5%, is this true, is sounds very good, struggle to get my head around this stuff and wonder if im missing something?

http://www.statesavings.ie/products/Pages/SavingsCertificates.aspx

They have a 5 year savings certificate which gives 5% after 5 years. Thats 5% total not 5% per year.

Geuze

Govt bonds do not yield 5% pa, no.

Small savers do not typically buy Govt bonds.

Ten year Govt bonds yield about 1-2% pa.