Investments  

Brewery launches 7.25% BeerBond

Brewery launches 7.25% BeerBond

Independent brewery Innis & Gunn has responded to the Bank of England’s monetary policy committee’s decision to keep interest rates at 0.5 per cent by launching a ‘BeerBond’.

Key Features

■ The four-year BeerBond offers an interest rate of 7.25 per cent gross interest a year for investments from £500

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■ Investors could also put their money into the BeerBucks BeerBond which offers an equivalent of 9 per cent gross interest rate a year

■ Return redeemed against beer at the Innis & Gunn online shop

David Cockburn, chief finance officer at Innis & Gunn, said: “Savers have had to live with low interest rates on their savings for more than six years, and all signs point to interest rates remaining low for at least another year.

“Cash savings are no longer generating the returns that people want to see for their hard work and patience is running thin as there have been few alternatives available to them until now.”

Last month rugby club Wasps launched a 6.5 per cent seven-year bond, in a quest to attract investors wanting income from a more esoteric investment.

Adviser view

Alan Solomons, director of London-based Alpha Investments and Financial Planning, said: “If fund managers want to put such bonds in as part of a portfolio and do the appropriate research, that is up to them.

“For most clients I would not suggest they invest in these, but for wealthy clients it might be worth a look.

“If it raises the money, it is a way of bypassing the banks, so I think we will probably see more of these.”