bond or isa

Just watch out for so called bonds that are very risky products that could lose your whole savings amount

LMS123 wrote: »

I have been wondering about this too so why add the word "bond" if there's no difference? Is it just to re-enforce the non-transfer aspect during the fixed term or is there subtle difference in the small print?

There's a piece about this at https://moneyfacts.co.uk/guides/savings/the-difference-between-a-savings-account-and-a-savings-bond04-02-11/ but yes, savings bonds will typically be fixed-rate fixed-term accounts with withdrawal penalties (if allowed at all) but the same can be said of savings accounts with those characteristics so the word 'bond' doesn't really add anything in these circumstances.

That article also explains that there's difference between a savings bond and an investment bond (where capital is at risk), so the use of the same noun for both does open up the potential for confusion, which can then be exploited by dodgy outfits who seek to portray the riskier one as the safer one to unsuspecting savers, hence all the threads on here asking about the apparently wonderful accounts offering 8% interest....

Edit: and, right on cue: http://forums.moneysavingexpert.com/showthread.php?t=5726738