Growing nest eggs

The government is offering bonds at 2.875% per annum for a two year tenor. With an eye on inflation, V and I thought it would be good to lock up some of our savings in this way. We don't want to risk the capital investing elsewhere so why not enjoy this higher interest rates? But alas, looks like the old adage "no risk no gain" is so sadly true. We calculated the returns, and realized that for all the effort going through this process, even after holding the bonds to full term, the interests would hardly even pay for one LV bag. Money can be spent so quickly, but it takes so long to be earned :P