5-year government bonds with a 5.50% rate

Over the last two weeks we are seeing a coordinated reduction in interest rate futures by many banks. In some cases we have seen crash futures products, contrary to their programming. Note that the drop occurs after the government recommendations to the bankers to cut interest rates futures. Now there are government bonds with a gross interest rate of 6%. The difference is that we need to commit money for five years ...

From January 28 to February 4, 2009 individuals will be able to buy government bonds at an interest rate 5.50% tax free. The duration is five years and a minimum investment amount is 1.000 €.

To take advantage of tax-free should keep the bonds until their expiry, until August 20, 2014.

In addition there will be a fee the bank on the market. That the bank may, for example to sell us a 1005 euro bond, reducing the annual yield to 5.40% for each of the five years.

If you want to compare the investment with their futures , we must consider that the annual gross yield is 6%. Subtracting taxes (10%) 5.40% remains clean.

Of course, the long duration of the investment are discouraging factor. If someone is not sure can wait as they may emerge and similar products.

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