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Term / Bond accounts
chihiro
Posts: 40 Forumite
hi could you please tell me what is the difference between Term / Bond accounts?
which is more secure?
do you think the bond is risky with the situation on the stock market please?
thanks
which is more secure?
do you think the bond is risky with the situation on the stock market please?
thanks
0
Comments
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If you are talking of savings accounts they are one and the same.
Technically they are fixed term accounts, i.e. 1, 2 ,3 years etc at a set interest rate, often incorrectly entitled "bonds" or "fixed term bonds" by banks/building societies.
There are not at all linked to the stock market, they are savings products and there is no risk, other than the normal "risk" of putting money in an account.
Obviously you have to lock your money away for the term, so only do it on funds you can afford not to access. If you try and access before the term is complete you'll be charged a penalty, or possible not even allowed to at all, depending on the bank.0 -
Depends if you mean real bonds or misnamed bonds?hi could you please tell me what is the difference between Term / Bond accounts?
Again, depends on the type of bond you are talking about.which is more secure?
do you think the bond is risky with the situation on the stock market please?
The problem we have, and it is a bit of a pet hate of mine, is that some of the banks and building societies started calling their fixed term deposits "bonds". They are not bonds but the marketing men seem to think that if you call something "bond" it sells more. The would probably call them fixed term chocolate if they thought they would sell more.
So you end up in a situation where you have fixed term deposit "bonds", guaranteed equity bonds, investment bonds (also misnamed but have been for far too long to change it), corporate bonds etc. All of which are very different but all referred to as bonds.
So, what type of bond(s) are you comparing?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.0 -
hi
I am asking about the Nationalwide Fixed rate Bonds(for a one year fix rate bond-net 5.20%) , or the Abbey Fixed Rate riward saver with the same interest.
Do you thing its a secure savings accound please? Which one is better to choose please?
thank you0 -
They are both fixed rate savings accounts as I mentioned in my first reply.
They are not investment bonds, as per dunstonh - they are just incorrectly named as per usual!0 -
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