Family Building Society is giving savers the opportunity to take a punt on the outcome of Brexit with two new Brexit bonds.
Brexiteers can select the optimist bond which pays a 2% bonus if the pound strengthens against the Euro after the UK leaves the EU, while Remainers can opt for the pessimist bond which pays a 2% bonus if the pound weakens against the Euro. The bond uses the exchange rate on 28 March 2017 (the day before Article 50 was triggered) when £1 bought €1.1535, and the exchange rate on 29 March 2019, the day the UK is expected to leave the EU.
With either bond no bonus is paid if the exchange rate doesn’t change and a 1% fixed rate is guaranteed for the term which finishes on 2 May 2019.
The Moneywise verdict
It’s a fun idea, but a bit of a gimmick. The minimum investment is high at £10,000 and if you pick the wrong bond 1% isn’t much to show for your money.
It’s also worth pointing out that many factors other than ‘Brexit’ will impact on exchange rates so you aren’t just taking a punt on the impact of the UK leaving the EU.
Savers with Atom Bank could get a guaranteed 2% with its new two-year fixed account. That said, if you did make the right punt and earn the 2% bonus you’ll end up with a total of 3% which you won’t match anywhere else at the moment - unless you get an interest-paying current account or have a regular saver linked to certain bank accounts. But even then, you’ll have to meet certain requirements to get these and the vast majority won’t pay a high interest rate on anywhere near as much as £10,000+.