Best S&S ISA for Bonds

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FixedIncome
FixedIncome Posts: 9 Forumite
First Anniversary
in ISAs & tax-free savings
Hello,

I am going to open my first ISA in UK.
I am interested in which are the best ISA for investing in Bonds.

These points should be considered:
1. availability of bonds
2. commission fee
3. online or by phone order

Please very appreciated if someone can share his experience

Thank,
Andrea
«1

Comments

  • le_loup
    le_loup Posts: 4,047 Forumite
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    Who have you investigated so far?
  • jimjames
    jimjames Posts: 17,621 Forumite
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    FixedIncome wrote: »
    Hello,

    I am going to open my first ISA in UK.

    ISAs only exist in the UK so I assume whatever you opened before wasn't an ISA.

    What exactly are you looking for with your ISA?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • FixedIncome
    FixedIncome Posts: 9 Forumite
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    jimjames wrote: »
    ISAs only exist in the UK so I assume whatever you opened before wasn't an ISA.

    What exactly are you looking for with your ISA?

    I moved to UK a few months ago, coming from a euro country.
    I think my nickname speaks by itself ... bonds have been my bread and butter.

    I have already got that in the Britain land Bonds are not popular at all, but let me see which is the best ISA in terms of bond investement, starting from the 3 points I listed in my first post.

    thanks
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
    edited 19 February 2018 at 5:05AM
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    do you want to buy sterling bonds? (it may be possible to buy bonds denominated in euros or other currencies, too; you'd have to consider FX charges.)

    i've used 3 brokers for individual bonds:

    1) hargreaves lansdown

    many bonds can be traded online - i.e. the ones with the white-on-green arrows in this list: http://www.hl.co.uk/shares/corporate-bonds-gilts/bond-prices/gbp-bonds

    online dealing gives you a live price (to accept or reject), including an accrued interest calculation. £11.95 dealing commission.

    for bonds that can't be dealt online, you'd have to deal by phone, with higher dealing commission. (i haven't done that.)

    they also charge on-going fees for just holding bonds in an ISA, of 0.45% per year, capped at £45 per year.

    2) ajbell youinvest

    bonds can only be dealt by phone. when you phone, you don't get a live price; you can place either of 2 order types: at best, or fill-or-kill.

    they charge their online dealing commission rate, £9.95, for bonds, not their higher phone rate (because bonds can't be dealt online).

    there are also on-going holding charges, of 0.25% per year, capped at £30 per year.

    3) iweb

    bonds can only be dealt by phone. you are quoted a live price while you're on the phone. they charge the same dealing commission as online, £5.

    however, i believe the range of bonds you can deal with iweb has become more restrictive recently.

    no on-going charges, but a one-off charge of £25 to open your first account.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    OP - just to be clear do you want investment grade bonds (where the value can go up and down) rather than fixed rate savings account? (often refered to as a bond)
  • C_Mababejive
    C_Mababejive Posts: 11,654 Forumite
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    Bond or bond fund?
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • dunstonh
    dunstonh Posts: 116,376 Forumite
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    I have already got that in the Britain land Bonds are not popular at all

    They are popular. However, only as part of a balanced portfolio. Investing them by themselves is not popular as that is generally regarded as poor quality investing. And with bonds expected to perform relatively badly in the coming years their only real benefit is to reduce volatility in a diverse portfolio.

    Also the word "bond" is one of the most misused words in financial services. Lots of bonds are not bonds. They are marketing names for a different investment or even a different product. I have assumed fixed interest securities in my response but you may be referring to something else.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Vortigern
    Vortigern Posts: 3,243 Forumite
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    I can't help feeling that the purpose of this thread is to promote a high risk investment with Elsie Eff.
  • badger09
    badger09 Posts: 11,210 Forumite
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    Vortigern wrote: »
    I can't help feeling that the purpose of this thread is to promote a high risk investment with Elsie Eff.

    Took me at least 30 seconds to puzzle who that might be.:o

    Thought I must have missed a deleted :spam: poster :rotfl::rotfl:
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
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    badger09 wrote: »
    Took me at least 30 seconds to puzzle who that might be.:o

    Thought I must have missed a deleted :spam: poster :rotfl::rotfl:

    I was a lot slower on the uptake!
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