Interest Bearing Investments



Fixed Interest Investments
The term "fixed interest investment" covers a broad range of investment options, ranging from the local bank’s term deposits through to government and company bonds.

They are investments, which are for a fixed period of time in which you lend the institution funds and they agree to pay back that sum (the principal) at the end of the term (the maturity date), as well as agreeing to pay you interest at regular intervals.

This type of investment allows you to choose the amount you wish to invest and the length of time you wish to commit your money to. They are ideal for people who want to lock into a set interest rate for a fixed term and who wish to have a guaranteed income flow. The can provide a certain amount of protection from falling interest rates, but on the other hand they can restrict you should interest rates increase.

In general, the rate of return from bank term deposits is much less than those offered by debenture stocks, etc. In the long-term, however, fixed interest investments should provide returns, which are higher than cash, but not quite as high as other inv...

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