We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Fixed rate bonds verses cash ISA
Melmar
Posts: 42 Forumite
This may seem a silly question but can anyone tell me, is a fixed rate bond paying 1.95% AER better than a cash ISA paying 0.65% AER
Thanks for your help
Thanks for your help
0
Comments
-
Yes it is.
The fixed rate bond pays 1.3% more interest.0 -
If you put £100 in, after one year you'd have
1. £101.95p
2. £100.65p
Even if you paid tax on the bond, lets say you are a 40% tax earner and earn more than £500/year in interest, you'd still have £101.17p. And thats just about the worst case tax. If you area lower rate tax payer and overall earn less than £1,000 in interest, you'd have the full £1.950 -
How much interest can you get on a fixed rate cash ISA?0
-
PeacefulWaters wrote: »How much interest can you get on a fixed rate cash ISA?
More to the point how much interest can you get on other accounts outside an ISA...Remember the saying: if it looks too good to be true it almost certainly is.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.7K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.8K Work, Benefits & Business
- 603.3K Mortgages, Homes & Bills
- 178.2K Life & Family
- 260.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards