What are ‘zero coupon’ bonds that yield more than the term deposits that banks now advertise? “Safe and a net return of 3 percent”

These are head-scratching times for savers looking for a fixed annual return: should you opt for a term account, a savings certificate, a savings account or the new government bond? Financial expert Thomas Guenter sees it differently: he advocates fiscally attractive bonds as a more lucrative alternative. What exactly are these so-called ‘zero coupon’ bonds? What returns can you achieve with them?

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