Are savings bonds safe??

chipmonk_2

HI FOLKS,

I have recently sold my house and have a lump sum to put away, I dont want to risk it in shares and need to have some income from it each month to help out with the bills.
I went to the yorkshire building society where I was advised to put it in a Rollover bond .I did this and put a large amount in it,I will receive approx £134 per month from it.
I have now been told by a family member that they are not safe and there is a big risk of me losing my money as you can imagine im pretty worried :eek: by this, does anybody know how safe they are? and I am still in the first month period where you can change your mind should I be doing this or is it safe where it is?
I would be very gratefull for any advice/information you could give me
thanks in advance

chipmonk xx

davidcampbell

what are they suggesting is not safe? savings bonds in general or the yorkshirein particular?

i dont see where there is any risk myself (any greater than usual), or indeed why your source should believe so unless they have 'inside' info re YBS?


DC

dunstonh

Bond is a term that covers way to many classes of business. You can have a bond investing in technology shares or a bond with all sorts of capital guarantees.

So, saying it is risky without knowing anything about it is careless talk.

cheerfulcat

chipmonk wrote:

HI FOLKS,

I have recently sold my house and have a lump sum to put away, I dont want to risk it in shares and need to have some income from it each month to help out with the bills.
I went to the yorkshire building society where I was advised to put it in a Rollover bond .I did this and put a large amount in it,I will receive approx £134 per month from it.
I have now been told by a family member that they are not safe and there is a big risk of me losing my money as you can imagine im pretty worried :eek: by this, does anybody know how safe they are? and I am still in the first month period where you can change your mind should I be doing this or is it safe where it is?
I would be very gratefull for any advice/information you could give me
thanks in advance

chipmonk xx

Hi there,

I think that many people get confused by the misuse of the term "bond" by banks,building societies and insurance companies. What is properly called a bond in investing terms is a loan to a company or government and can indeed be a pretty risky proposition. The Yorkshire BS Rollover Bond, however, looks like a money market account. It is simply a deposit account with interest that is fixed monthly. Your money is not at risk unless the building society folds, which seems pretty unlikely.

HTH

Cheerfulcat

chipmonk_2

THANKS EVERYONE

for your replys, i looked into it again and im happy that my money is safe the person who told me it wasnt thought i had put it into stocks n shares ,
now i can sit back for a year and spend my interest.
thanks again chipmonk :-)