Don't let volatile markets frighten you off Isas
22 Feb 2012
Bonds can refer to a wide range of different accounts and investments. They range from the safety of government-backed National Savings & Investments (NS&I) to investment bonds for more adventurous souls.
NS&I, for example, has several types of bonds including premium bonds, index-linked certificates and guaranteed income bonds, although some of these accounts may not be on offer all the time.
Other types of bonds are riskier investments - these include government bonds and corporate bonds, with-profit bonds and stock market linked bonds.
What most have in common is a lack of easy access, so expect early withdrawal fees if you cannot wait for your bond to mature. Bonds are seen as a longer-term investment, with the aim of generating more growth in the end for investors.
Always seek professional independent advice if you are considering one of these options, so that you can choose investments which will meet your financial requirements and suit your risk appetite.
