Forget NS&I Premium Bonds and Income Bonds. I’d buy UK shares for more than a passive income

first_img “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images. Forget NS&I Premium Bonds and Income Bonds. I’d buy UK shares for more than a passive income Peter Stephens | Monday, 19th October, 2020 I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Low interest rates mean that making a passive income from NS&I products, such as Premium Bonds and Income Bonds, is now more difficult. Rates have been slashed across savings product ranges. This could mean dividend yields on UK shares become more attractive as the economic outlook improves.However, British shares offer more than just a generous income return. Their cheap prices and recovery prospects mean they could produce impressive capital growth. As such, now could be the right time to buy a diverse range of FTSE 100 and FTSE 250 shares for the long run.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Making a passive income with UK sharesIt’s possible to build a diverse portfolio of UK shares that provides a significantly higher passive income than NS&I Premium Bonds or Income Bonds. Certainly, some companies are still pausing dividend payouts at the present time in response to challenging operating conditions. However, many FTSE 100 and FTSE 250 stocks are making worthwhile shareholder payouts. And they could realistically grow over the coming years.Furthermore, the stock market crash has caused many British shares to trade at low prices. This means that their yields have risen in many cases. As such, the income returns available on a basket of UK shares are relatively high at the present time. In an era of low interest rates, this may make them even more appealing compared to bonds and savings accounts.Capital return prospectsAs well as offering a passive income, UK shares could deliver impressive capital returns. The track record of indexes such as the FTSE 100 and FTSE 250 shows that they have always fully recovered from even their very worst crises. For example, the global financial crisis wiped over 50% from the FTSE 100’s price level. It took the index a number of years to fully recover, but investors who bought while its members’ shares were trading at cheap prices benefitted from its resurgence.Therefore, buying a range of cheap shares today could be a very profitable move over the long run. They could deliver significant price gains that complement their income potential.Low interest ratesMaking a passive income from NS&I Premium Bonds and Income Bonds may become even more difficult. There are persistent rumours about negative interest rates being used by the Bank of England to combat the UK’s weak economic performance. While cash and bonds may offer less risk than shares, their extremely low returns could make them somewhat obsolete from an income perspective.This may make UK shares even more appealing to income investors. The end result could be rising share prices as demand for seemingly ever-shrinking income opportunities takes hold. Therefore, now could be the right time to buy a range of cheap British shares that offer high yields and growing dividends over the long run. Simply click below to discover how you can take advantage of this. Enter Your Email Address See all posts by Peter Stephenslast_img

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