advice on investment/ savings

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Lily pomme
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advice on investment/ savings

Postby Lily pomme » Mon Dec 31, 2018 12:19 pm

Hi there,

Has anyone invested a lump sum recently with a cash ISA or a fixed bond?
If so, which one did you go for?

I have read quite a lot online (newspapers financial pages, Moneysaving websites etc) and it seems that fixed Bonds are better than ISA's in terms of returns. 

 RateSetter comes top of a rating on returns, does anyone have experience with them?

Thx ... s-accounts
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Re: advice on investment/ savings

Postby jtreliving » Mon Jan 07, 2019 9:12 am

They're rather different kinds of investment vehicles, so it's difficult to compare the two. For example, a bond isn't a tax exempt wrapper (while an ISA is) but might be appropriate for you given your tax status.

Furthermore, you can be locked in with a bond for a significant period of time, and the return being advertised might be for the full lock in period, not the year on year profit. The return may be diminished by your tax treatment when you cash in too. Read the fine print.

This subject is a bit too complex to discuss here, and I'm not really the right person to ask if you want proper advice. If you're open minded about speaking to an IFA, give Catherine Simmonds of St James' Place a call, she's incredibly knowledgable and professional. Her number is 07967 204386.

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Re: advice on investment/ savings

Postby willls » Mon Jan 07, 2019 9:18 am

Hi Lily,

My name is William Stevens and I am a Financial Planner at Killiik & Co.  You may have noticed we opened an office on Northcote Road back in June with the aim of providing the local community with assistance with their financial needs.

As you have suggested the rates on cash ISAs are quite low by historic trends.  However, it is possible to utilise ISAs to invest into other options rather than just cash (such as, bonds or shares) and keep the tax advantages of an ISA.

I would be pleased to have a telephone conversation with you to see if I can help you in any way with this query and run through any questions you may have in more detail.  Any initial conversation would be completely confidential and free of any obligation.  If you are interested my contact details are: or 0207 337 0627.

For some background, we are an independently owned investment house and both myself, and the firm, are authorised by the FCA to provide investment advice.

I look forward to hearing form you.

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Re: advice on investment/ savings

Postby clare74 » Mon Jan 07, 2019 12:07 pm

I'm in agreement with the others that it would make sense to discuss this with a professional who'd be able to look at your situation holistically as there isn't really a one-size-fits-all answer. 

Like William, I'm a financial adviser and if I was talking to a client, I would be looking at aspects such as:
- how long you want to invest for and whether you'd potentially need to access it in the short term
- your goals and concerns
- the sum in relation to your other assets
- how best to use tax allowances available to you
- how you feel about risk

Without knowing all of these things, it's very hard to say what's right for you. Here is some generic information which may help:

Cash ISA
You have £20,000 ISA allowance each year. A cash ISA has tax advantages: no tax on the interest and no tax when you take it.
But because interest rates are low at the moment, and particularly since the government introduced the Personal Savings Allowance* you may not need to pay tax on your cash savings anyway. (*See
That said, there are other reasons that a cash ISA may be appropriate - not least capturing the 2018/19 ISA allowance which you lose if not used by the end of the tax year. 

"Fixed bond"
A savings bond gives a fixed rate of interest over a term - and typically the longer the term, the higher the interest rate offered. But check the T&Cs to see whether:
a) you actually can't access it sooner than the end of the term you choose
b) you'd forfeit (some of) the interest if you needed to access it 

This is a different proposition as it's not cash savings, it's peer-to-peer lending. You get potentially higher returns because the risk is higher. RateSetter is regulated and authorised by the FCA (very important) but they are not covered by the Financial Services Compensation Scheme. 

I hope this helps.  
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