Gilt

A gilt-edged security (gilt) is a government bond – a security or stock issued by the government paying a fixed rate of interest and redeemable on a set date for a set amount, usually £1,000.

Gilts are considered one of the safest long-term investments, as the government is unlikely to default on its payments. As with most fixed interest-securities or bonds, the price of a gilt is sensitive to interest rates and inflation. As rates rise the price of gilts will fall to bring their yield in line with the market, and as interest rates fall the price of gilts will rise.

A range of gilts are available and can be bought direct by post through the National Savings Stock Register or you can buy them through a stockbroker or bank.

 

MoneyWeek magazine

Latest issue:

Magazine cover
In the balance

How May 2015 could hit your pocket

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Russell Napier: deflation is coming – hold on to your cash

Financial historian Russell Napier talks to Merryn Somerset Webb about the next deflationary bust – why it's coming, what it means for you, and how you can survive it.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


27 November 1924: Macy's first Thanksgiving Day parade

On this day in 1924, New York department store Macy's held its first Thanksgiving Day parade. It would soon become a city institution, kicking off the run-up to Christmas.