Interest Free Loans to the Government

[robert551069]

I remember hearing about COMPULSORY loans to the Government which were paid back as Post-War Credits after WW2. I have since learned that they were not a good investment.
I am wondering if it would be possible for patriotic people who have cash to spare to make interest free VOLUNTARY loans TO the Government?
These could be for varying periods of, say, 3, 5 or 7 years.
The money would be paid back by the Government adjusted for the rate of inflation over the period of investment.
Perhaps this might be cheaper than the present borrowing rate.

[Old_Geezer]

If the money paid back was compensated for inflation then it isn't interest free is it ? It's just an undisclosed rate until pay back time. And would probably outperform many alternative invstment opportunities were it available. I'm sure the goverment must be able to borrow money cheaper than that if they have been imprudent and thus desperate for a loan.

[robert551069]

Thank you for your comments Old_Geezer.
I wonder what the Government pays for its loans at present?

[sandyRoe]

Here's an article about Gilts.

http://www.telegraph....e-can-I-buy-them.html

[robert551069]

Thank you for the information about Gilts, sandy Roe

[ubasses]

The Government is paying 1.9% on the open market for it's bond sales.