savings bond

book12

I wonder if I am right about the function of the savings bond:

You put money for a certain time ( 'x' months or 'x' years). After it matures, the money goes to a nominated instant savings account, then the 'bond' account will revert back to £0 and you put money in the 'bond' account and starts again. Am I correct?

RayWolfe

Not quite. When a savings "bond" matures it may go into an instant access account or you might be able to have it sent somewhere else (your current account, for example). The bond closes. There may be another bond available into which you may put the proceeds, or the capital, or an additional amount.
Each "bond" will have terms & conditions which will tell you what will happen at maturity.

Lansdowne

However, some Regular Savings account work like that, Britannia had one for example.
You put in up to £250 a month (so max £3000) for a year from your pay cheque, gain a higher-than average interest rate and at the end of the year, the £3k gets removed to a normal account but you can start again. I'm hoping Britannia is going to offer 7.5% for a further year to existing Reg S customers, but it will only be on the new money.