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  • FIRST POST
    • Melmar
    • By Melmar 11th Apr 18, 5:14 PM
    • 33Posts
    • 1Thanks
    Melmar
    Fixed rate bonds verses cash ISA
    • #1
    • 11th Apr 18, 5:14 PM
    Fixed rate bonds verses cash ISA 11th Apr 18 at 5:14 PM
    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
Page 1
    • ValiantSon
    • By ValiantSon 11th Apr 18, 5:22 PM
    • 1,892 Posts
    • 1,754 Thanks
    ValiantSon
    • #2
    • 11th Apr 18, 5:22 PM
    • #2
    • 11th Apr 18, 5:22 PM
    Yes it is.

    The fixed rate bond pays 1.3% more interest.
    • AnotherJoe
    • By AnotherJoe 11th Apr 18, 5:28 PM
    • 9,436 Posts
    • 10,442 Thanks
    AnotherJoe
    • #3
    • 11th Apr 18, 5:28 PM
    • #3
    • 11th Apr 18, 5:28 PM
    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 1.95
    • PeacefulWaters
    • By PeacefulWaters 11th Apr 18, 5:32 PM
    • 8,320 Posts
    • 10,638 Thanks
    PeacefulWaters
    • #4
    • 11th Apr 18, 5:32 PM
    • #4
    • 11th Apr 18, 5:32 PM
    How much interest can you get on a fixed rate cash ISA?
    • jimjames
    • By jimjames 11th Apr 18, 8:59 PM
    • 12,588 Posts
    • 11,239 Thanks
    jimjames
    • #5
    • 11th Apr 18, 8:59 PM
    • #5
    • 11th Apr 18, 8:59 PM
    How much interest can you get on a fixed rate cash ISA?
    Originally posted by PeacefulWaters
    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.
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