Hedge your bets with Post Office savings bond

A new five-year savings bond has been launched this week, offering savers a risk-free route to high returns.

The Post Office has announced the launch of the fifth issue of its Fiveyear Saver bond, which permits savers to benefit from gains in the stock market without taking on the risk of losing their money.

The bond delivers 7.5 per cent gross interest on half of the sum deposited, plus 50 per cent of any rise in the FTSE 100 index on the rest it over the course of the five year period. People’s savings are thereby insulated from any risk of loss.

Post Office director of savings and investments Richard Norman said: “Although many investors are seeking to benefit from gains in the stock market, they also want a guarantee that they won’t lose their money.

“Post Office Fiveyear Saver is a secure investment which gives a guaranteed return, while still offering the growth potential of the FTSE-100 Index. There is no risk of losing your original deposit and you can invest from just £500.”

The maximum investment is £1 million, and the offer period is open until January 11 next year.

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50+ landlords warned over tax

The number of people aged over 50 who own a buy-to-let property is set to surge in the coming year.

That is according to over-50s expert Saga, which believes we will see a 24 per cent rise in the number of older buy-to-let owners.

As a result, it is urging people to take advice on tax and make sure they are properly declaring their rental income.

It also urges over-50s to ensure that they are taking full advantage of the tax relief that is available to them.

“It is no surprise that over-50s own the majority of second and rental properties in the UK, however, as more and more decide to follow this route, it is important that they understand the tax implications that rental income will have,” commented Andrew Goodsell, chief executive of Saga.

Landlords have until June 22nd to declare underpayments in their tax to HM Revenue and Customs and this will lead to a 90 per cent reduction in the penalty charged.

Buy-to-let owners are being warned that they should urgently seek advice or else face the prospect of having to pay a full charge.

Tags: prospect, route, HM Revenue and Customs, Andrew Goodsell, over-50s expert saga