Switching to PostOffice ISA & investing in Bonds

krish2011

Hi,
My ISA account is currently with Barcalys. I can see that interest rate with Barcalys is less than with PostOffice. Hence I want to swtich my ISA to PostOffice. Could you please provide your suggestion on this.
I also want to know whether investing in Bonds with PostOffice is good for higher returns.

Thanks in advance.

Regards,
Krish

oldvicar

I presume you are aware that the 'Post Office' is just a marketing front, and that the deposit taker is really Bank of Ireland UK.

What I personally dislike about the terms of their bonds is that there is absolutely no early access, however desperate you may be.

dunstonh

When you say investing in bonds do you mean invest in bonds or do you mean saving in fixed term deposits, some of which may be incorrectly called bonds?

Ifts

oldvicar wrote: »

What I personally dislike about the terms of their bonds is that there is absolutely no early access, however desperate you may be.

If you are saving in the 1,2 or 3 year Growth Bonds offered by the Post Office, early access is allowed but partial withdrawals are not allowed, you have to close the bond and a breakage fee will be applied.

http://www2.postoffice.co.uk/finance/savings-investments/growth-bonds/summary-box

Ifts

krish2011 wrote: »

I also want to know whether investing in Bonds with PostOffice is good for higher returns.

If you are referring to the Growth Bonds offered by the Post Office, their 2 and 3 year fixed term bonds are currently some of the best rates available, although still below inflation. The Post Office 1 year bond can be beaten by the The Cheshire BS Fixed Rate Bond which pays 3.55% AER for a year

krish2011

dunstonh wrote: »

When you say investing in bonds do you mean invest in bonds or do you mean saving in fixed term deposits, some of which may be incorrectly called bonds?

What I mean is investing in "Growth Bonds" or fixed term deposits for like 1,2 or 3 years.Thanks for your help mate.

oldvicar

dunstonh wrote: »

When you say investing in bonds do you mean invest in bonds or do you mean saving in fixed term deposits, some of which may be incorrectly called bonds?

krish2011 wrote: »

What I mean is investing in "Growth Bonds" or fixed term deposits for like 1,2 or 3 years.Thanks for your help mate.

Although dunstonh was being a bit pedantic, your churlish response clearly indicates that you don't understand the important point a distinguished IFA is trying to make. Good luck to you mate