September 14th, 2011 National Grid issuing an index linked bond Dear Subscriber National Grid is offering UK's first inflation linked bond open to everyone, appealing to savers worried about the falling value of their savings in the bank. The new 10-year bond, which requires a minimum £2,000 investment, will have an annual interest rate of 1.25pc above the rate of inflation, as measured by the Retail Price Index (RPI). There is currently not a single savings account available that beats RPI at 5.2pc. When asked how safe it is to invest with National Grid, which is triple B rated, Henrietta Podd, of Evolution Securities, which is marketing the issue, said: 'National Grid runs the transmission and distribution for gas and electricity for the country - I'm not sure the country would function without it. It's an essential infrastructure'. Retail bonds are considered more risky than bank accounts because they are not covered by depositor guarantee schemes in case of default by the issuer. However, they have become more popular in recent years, as interest rates have remained low since the financial crisis. Royal Bank of Scotland last year launched a retail bond with an interest rate of 3.9pc, or RPI - whichever is higher. Companies such as Tesco and John Lewis have previously targeted retail investors with bonds in small £100 chunks and short maturity dates. Is it a good deal? But how does National Grid's index linked bond compares to a prospective dividend yield on its shares for 2012 of well over 6%, and growing? Read more on this Here. Until next time. Kind regards Steven Dotsch Editor Early Retirement Investor.com Know someone who'd like to receive Dividend Alerts themselves? Simply forward this link to anyone you think could benefit from our publication: https://www.early-retirement-investor.com/dividend-alerts.html Dividend Alerts is an unregulated product published by EMAR Publishing, publishers of Early Retirement Investor.com EMAR Publishing is not registered as an investment advisor or financial advisor. We do not and will not provide personalised investment or financial advice, or individually advocate the purchase or sale of any security or investment. We publish opinionated information about the stock market and companies that we believe our subscribers may be interested in. There is no guarantee that dividends will be paid. Figures are calculated using the closing prices. All gains are gross, and returns will be affected by dividend payments, dealing costs and taxes. Profits from share dealing are a form of income and subject to taxation. Tax treatment depends on individual circumstances and may be subject to change in the future. Editors or contributors may have an interest in shares featured. Past performance and forecasts are not reliable indicators of future performance. Shares are by their nature speculative and can be volatile. Your capital is at risk so you should never invest more than you can safely afford to lose. Information in Dividend Alerts is for general information only and is not intended to be relied upon by individual readers in making (or not making) specific investment or financial decisions. Appropriate independent advice should be obtained before making any such decision. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. © 2010 EMAR Publishing. All Rights Reserved. The content of this email may not be reproduced without the written consent of EMAR Publishing Click for Legal Information, Disclaimer and Privacy Statement Here.