A security with state guarantees on both the interest to be paid and the price at which it can be redeemed at any time. These are thought of as suitable assets for savers with small total wealth and limited financial sophistication, of whom ‘grannies’ were assumed to be typical examples. Provision of such guarantees cannot be afforded except by the state. Securities of this type have typically been made available only to limited classes of holders, in relatively small amounts. This restriction is partly because the guarantees might be expensive to honour, and partly because if such securities were freely available, it would be difficult for many businesses to borrow at all.