How to Buy Government Bonds in the UK

UK government bonds are bought and sold on the stock market.

United Kingdom government bonds, also known as gilts, are government-issued bonds that offer fixed interest rates. The government pays out interest semi-annually, and these bonds are considered a safe investment. You can buy gilts on the stock market or through the government.

Instructions

1. Go to Computershare Investor Services PLC's website and download the "Overseas Individual Application to Join Approved Group of Investors" form (see Resources) if you are not a citizen of the UK.

2. Fill out the form. Make copies of your identification and a bank statement or bill verifying your address. Mail the form back to the address listed at the top of the form.

3. Go back to the Computershare website and download the "Application to Purchase" form (see Resources).

4. Fill out the form, specifying which gilts you wish to purchase. Call Computershare for a listing of available gilts.

5. Write a check for the exact amount and make it payable to Computershare Investor Services PLC. Mail the form and check back to the address listed at the top of the form.

Tips & Warnings

• You also can purchase through a bond broker. Just tell him how many government bonds you wish to purchase and to purchase them on your behalf.

• Payment can only be made in sterling checks drawn from an account in your own name. Do not attempt to pay for gilts using someone else's UK bank account or a United States check.

References

• Directgov: Corporate Bonds and Government Bonds
• Debt Management Office: A Private Investor's Guide to Gilts

Resources

• Computershare: Overseas Individual Application to Join Approved Group of Investors
• Computershare: Application to Purchase