Welcome to the Bonds page, bonds (or term savings accounts) are high interest savings accounts that are long term investments. They offer some of the highest rates of interest available so are great for long term savings, they are usually fixed for a certain amount of years and do not usually allow you to add to the investment once the bond has been opened.




The term of the bond is usually set over a number of years with 1-5 years being popular, there are also longer term bonds that are good for children as these are usually not needed for many years. Bonds are very good investments for children as you can invest a fairly small et amount and see it grow allot over the years while the child grows up, the investment will grow allot as the interest rates are so high. The interest rates are usually set though for the term of the bond so if the investment is very long term then you have to consider that if interest rates rise allot over the term of the investment you may not benefit from this.

Access to the savings in a bond is not usually allowed until the bond has matured and if you really need to access the money then you will likely be penalised for doing so. So if you have doubts that you will be able to leave the bond until it matures then maybe another type of savings account would be better as there are other savings accounts that allow instant access or access with some notice that still have good rates of interest.

Bonds are great investments to make for children as the money is tied up until the child becomes an adult, many families buy a bond for the child when they are very young and also often buy other bonds throughout the child's childhood. Doing this is great as the investments can be quite small but will grow allot over the years due to the high interest and if you buy one every year the child will have some very good savings when they grow up which will be a great help with education and living costs.