Gilt Information

Gilt Edged Securities or Gilts are bonds issued by HM Treasury. They are designed for people who want a predictable rate of income at very low risk. Gilts are known for their security and are viewed as the safest of investments, however several factors can affect their value such as inflation, interest rates and other competing forms of investment and the time left until maturity.

Typically, a Gilt can be bought or sold at anytime for the present market price with no penalties. Once maturity is reached, the stock is bought back by the Government at face value. It should be noted that when a Gilt gets closer to redemption, the price of the Gilt moves towards the redemption value. This is known as the 'pull to redemption'.

With Bank of Scotland Share Dealing, you are able to hold Gilts in our Share Dealing Account, our Self-Select Stocks & Shares ISA* and our SIPP products.

Five Key Benefits of trading Gilts with Bank of Scotland Share Dealing

1. An extremely reliable and secure investment with a guaranteed      return issued by HM Treasury.

2. Gilts are free from Capital Gains Tax

3. Conventional Gilts are a liability of the Government which      guarantees to pay the holder of the gilt a fixed cash payment      (coupon) until the maturity date, at which point the holder receives      the final coupon payment and the return of the principal deposit.

4. Index-linked Gilts are similar to Conventional Gilts however they     differ in that the coupon payments are adjusted in line with the UK     Retail Prices Index (RPI). This means that both the coupons and the     redemption of these gilts are adjusted to take account of inflation.

5. The name of a Gilt includes the interest rate which you will receive      for added transparency

*Subject to there being 5 years or more left until maturity

Please note that Gilts are ineligible for the Bank of Scotland ShareBuilder product.

Opening Your Account
Your Bank of Scotland Share Dealing Account can be opened with a £100 initial deposit. This can then be invested into any eligible investment of your choice. 

Transfer from your current provider- Find out more about how to transfer from your existing provider to a Bank of Scotland Share Dealing!