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    • pineda
    • By pineda 11th Oct 17, 2:14 PM
    • 1Posts
    • 0Thanks
    pineda
    bond or isa
    • #1
    • 11th Oct 17, 2:14 PM
    bond or isa 11th Oct 17 at 2:14 PM
    I normally would just invest in a fixed term cash ISA which is now maturing and I'm looking for somewhere to move it on to. I have seen fixed term cash ISA bonds issued. Can somebody please explain the difference. Thankyou
Page 1
    • eskbanker
    • By eskbanker 11th Oct 17, 2:18 PM
    • 5,889 Posts
    • 5,844 Thanks
    eskbanker
    • #2
    • 11th Oct 17, 2:18 PM
    • #2
    • 11th Oct 17, 2:18 PM
    No difference - the word 'bond' can be used to mean various things, but in the context of "fixed term cash ISA bonds" it's superfluous, i.e. it's just a cash ISA.
    • jimjames
    • By jimjames 11th Oct 17, 8:45 PM
    • 12,238 Posts
    • 10,766 Thanks
    jimjames
    • #3
    • 11th Oct 17, 8:45 PM
    • #3
    • 11th Oct 17, 8:45 PM
    Just watch out for so called bonds that are very risky products that could lose your whole savings amount
    Remember the saying: if it looks too good to be true it almost certainly is.
    • LMS123
    • By LMS123 13th Oct 17, 8:10 AM
    • 17 Posts
    • 6 Thanks
    LMS123
    • #4
    • 13th Oct 17, 8:10 AM
    • #4
    • 13th Oct 17, 8:10 AM
    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?
    • eskbanker
    • By eskbanker 13th Oct 17, 10:07 AM
    • 5,889 Posts
    • 5,844 Thanks
    eskbanker
    • #5
    • 13th Oct 17, 10:07 AM
    • #5
    • 13th Oct 17, 10:07 AM
    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?
    Originally posted by LMS123
    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
    Last edited by eskbanker; 13-10-2017 at 10:51 AM. Reason: Added link to another topical thread
    • silvasava
    • By silvasava 13th Oct 17, 2:31 PM
    • 3,290 Posts
    • 52,431 Thanks
    silvasava
    • #6
    • 13th Oct 17, 2:31 PM
    • #6
    • 13th Oct 17, 2:31 PM
    Have just seen Al Rayan Bank offering 1.91% for a 12month fixed term deposit bond. Am very tempted as I'm only getting .75% at the mo!
    Would welcome any comments? They are registered FCS.
    Small victories - sometimes they are all you can hope for but sometimes they are all you need - be kinder than necessary, for everyone you meet is fighting some kind of battle
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