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squidproquo | 4 years ago

This is not a great investment. It's pays it's base rate (0.0%) plus inflation (7.12%). The rate is based on inflation and is reset every 6 months, and I'm assuming the base rate of (0.0%) doesn't change. It may make sense for some people who are risk-averse and already have savings in a bank account that is getting demolished by low rates and high inflation.

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loeg|4 years ago

Right, the base rate never changes for the life of the bond, and it generally outperforms cash while also being zero-risk.