Bond or Fixed Savings Account?

LongTermLurker

hungry_jenny wrote: »

Hi Dunstonh

Thanks for replying - sorry for being slow, but you've lost me a bit here - what sort of risks do you mean and what should I be watching out for?

Cheers

Jenny, be aware you and dunstonh are talking about two different things - he's talking about bonds in the true financial sense of the term, while you are talking about Fixed Term Deposits, which banks confusingly call "bonds". In its true sense, a "bond holder" has a financial interest in a company - you're just looking to save with a bank. The types of account you're looking at don't carry these risks. His examples above are risks to Guaranteed Equity Bonds (a different banking product).

hungry_jenny

Thanks for the clarification!

agsnu

dunstonh wrote: »

That is why you need to make sure you use a financially strong underwriter.

What, like Lehman Brothers?