Short dated bonds could soon be ISA elligible

IronWolf

Hidden in the Autumn Statement is this

Retail participation in capital markets: increasing retail bonds for ISAs – The government is exploring whether to increase the number of retail bonds eligible for stocks and shares ISAs by reducing the requirement that such securities must have a remaining maturity above 5 years.

Good news for people looking for some better interest rates on ISA savings.

bigadaj

IronWolf wrote: »

Hidden in the Autumn Statement is this

Retail participation in capital markets: increasing retail bonds for ISAs – The government is exploring whether to increase the number of retail bonds eligible for stocks and shares ISAs by reducing the requirement that such securities must have a remaining maturity above 5 years.

Good news for people looking for some better interest rates on ISA savings.

Interesting, presumably they mean bonds in terms of company debt?

My only concern would be that people might blindly rush in to these things to a greater extent thaN Currently given low interest rates, and the risk and lack of Fscs protection won't be appreciated before one or more goes pop.

Archi_Bald

they are only exploring it, so it's a long time from becoming reality.

As and if it will become a reality, there will be plenty of noise about it, incl all the facts and warnings, but no doubt plenty of people will jump in head first and might get hurt. You can't help it if people are not responsible for their own actions.

Freecall

Good news for many on these boards I would have thought though.

Expanding investment options has to be attractive.

Porcupine

If they do, I do wish they'd prevent banks and building societies from offering fixed-rate savings 'bonds'. Call them something else. It's already becoming confusing with the recent increase in single-company investment bonds that are being marketed as an alternative to savings, only with much more risk.

Better to define 'bonds' as an investment product as the rest of the world uses them, and banks can have fixed-rate 'deposits' instead.

JamesMc69

This might be linked to this apparently the government is thinking about ISA status for p2p and debt securities more broadly..

http://www.ft.com/cms/s/0/2294b97c-5cc7-11e3-81bd-00144feabdc0.html?siteedition=uk#axzz2mWS292pu