bond or isa

pineda

I normally would just invest in a fixed term cash ISA which is now maturing and I'm looking for somewhere to move it on to. I have seen fixed term cash ISA bonds issued. Can somebody please explain the difference. Thankyou

eskbanker

No difference - the word 'bond' can be used to mean various things, but in the context of "fixed term cash ISA bonds" it's superfluous, i.e. it's just a cash ISA.

jimjames

Just watch out for so called bonds that are very risky products that could lose your whole savings amount

LMS123

I have been wondering about this too so why add the word "bond" if there's no difference? Is it just to re-enforce the non-transfer aspect during the fixed term or is there subtle difference in the small print?

eskbanker

LMS123 wrote: »

I have been wondering about this too so why add the word "bond" if there's no difference? Is it just to re-enforce the non-transfer aspect during the fixed term or is there subtle difference in the small print?

There's a piece about this at https://moneyfacts.co.uk/guides/savings/the-difference-between-a-savings-account-and-a-savings-bond04-02-11/ but yes, savings bonds will typically be fixed-rate fixed-term accounts with withdrawal penalties (if allowed at all) but the same can be said of savings accounts with those characteristics so the word 'bond' doesn't really add anything in these circumstances.

That article also explains that there's difference between a savings bond and an investment bond (where capital is at risk), so the use of the same noun for both does open up the potential for confusion, which can then be exploited by dodgy outfits who seek to portray the riskier one as the safer one to unsuspecting savers, hence all the threads on here asking about the apparently wonderful accounts offering 8% interest....

Edit: and, right on cue: https://forums.moneysavingexpert.com/discussion/5726738

silvasava

Have just seen Al Rayan Bank offering 1.91% for a 12month fixed term deposit bond. Am very tempted as I'm only getting .75% at the mo!
Would welcome any comments? They are registered FCS.