What is a PIB?
When Building Societies want to borrow money, they issue Permanent Interest Bearing Shares (PIBS). They have some similar characteristics to Gilts, such as most PIB holders will be entitled to regular fixed interest payments. All PIBs are irredeemable which means that unlike most Gilts there is no final maturity/expiration or redemption date. Unlike Gilts a PIB offers no certainty as to the capital repayment as the Society is under no obligation to repay the principal capital. They cannot be sold back to the Building Society but can be bought and sold on the Stock Exchange, which means the price varies.
PIBS can be traded on both our Certificated & Nominee style accounts. For an ISA or SIPP they must have at least 5 years till redemption to be eligible.
Please be aware that PIBs cannot be dealt online. If you wish to trade please call us on 0800 279 6551 / 0141 352 3909.