Not the time for tracker bonds, savers warned

Jess Bown

Savers are being urged to think twice before investing in bonds that track the Bank of England base rate, which has now languished at an historic low of 0.5% for 30 months.

The bonds are designed to appeal to savers who believe that the base rate must rise at some point during the next two years. But if base rate remains stuck at 0.5% for the foreseeable future, they offer poor value compared to two-year fixed-rate bonds.