2% bonus on Virgin 1 year bond..

Middle_of_the_Road

...when you invest £5,000 in their S&S ISA

https://uk.virginmoney.com/investments/ebond-exclusive/

Would anyone consider this to be a good offer if you were looking to invest in a S&S ISA for the first time?

ColdIron

Virgin have a very restricted range of portfolios (3) with highish charges, (0.75% pa). What you invest in is the most important factor with investing and I wouldn't ordinarily consider the Virgin offering, a short term inducement wouldn't alter my opinion. I think it's best to keep savings and investments separate and not let one influence the other

InvesterJones

If you were happy to move everything out once done, yeah. But S&S ISA really suit long term investing and being left alone (from a risk of fiddling perspective) so Virgin's high fees would be a problem if that's what you did long term.

Middle_of_the_Road

ColdIron said:

Virgin have a very restricted range of portfolios (3) with highish charges, (0.75% pa). What you invest in is the most important factor with investing and I wouldn't ordinarily consider the Virgin offering, a short term inducement wouldn't alter my opinion. I think it's best to keep savings and investments separate and not let one influence the other

I had wondered why it's not been mentioned on here before. The point's you highlighted are no doubt the explanation.

Middle_of_the_Road

InvesterJones said:

If you were happy to move everything out once done, yeah. But S&S ISA really suit long term investing and being left alone (from a risk of fiddling perspective) so Virgin's high fees would be a problem if that's what you did long term.

Thanks, probably why it's not been mentioned previously on here.

pecunianonolet

The question is if you have to invest or if you would also get interest on uninvested cash, similar to Trading212?

Middle_of_the_Road

pecunianonolet said:

The question is if you have to invest or if you would also get interest on uninvested cash, similar to Trading212?

That's a good point, but if interest on uninvested cash was an option, I doubt it would be at a rate that makes the 2% bonus on the bond worthwhile.

pecunianonolet

Middle_of_the_Road said:

pecunianonolet said:

The question is if you have to invest or if you would also get interest on uninvested cash, similar to Trading212?

That's a good point, but if interest on uninvested cash was an option, I doubt it would be at a rate that makes the 2% bonus on the bond worthwhile.

If you get 4.25% return on "uninvested" cash within the ISA as a fix and 4.25% plus 2% bonus on the normal non ISA funds fixed it would yield a blended rate of 5.25% (assuming no tax implications) and both sums are matching e.g. 5k as the minimum to open the S&S ISA.

Middle_of_the_Road

Looks like there's no interest on uninvested cash.

"For the period between paying money in and us investing it (or when you take money out but it hasn’t reached you yet) we’ll hold the money as cash. This is

known as client money.

Since it’s your money, we make sure it’s separate from any of ours and keep it

in an account with Lloyds Bank Plc. (This account doesn’t earn any interest.)"

Edit:
I'm sure that account does earn interest, but they're not passing it on