ISA Bonds

The Mad Rapper · 18 Nov 2008 at 16:19

I am considering opening a 1 Year ISA Bond with Bradford and Bingley. It pays 6.25% which is great.

I am a little confused as to what happens to the interest when the year is up? Do I lose the tax free component of the interest if I don't then put the money into another ISA vehicle, or do I get all of the interest regardless?

p4radox · 18 Nov 2008 at 16:32

I think you earn the entire interest free component, regardless of what you do with it at the end of the year. But once the year is up it gets transferred into a standard low interest ISA.

I was looking at the exact same ISA, but have had trouble filling in the online application - it simply times out...

The Mad Rapper · 18 Nov 2008 at 17:38

p4radox said:
I think you earn the entire interest free component, regardless of what you do with it at the end of the year. But once the year is up it gets transferred into a standard low interest ISA.

I was looking at the exact same ISA, but have had trouble filling in the online application - it simply times out...

You can apply in-branch.

psd99 · 18 Nov 2008 at 18:16

Best thing to do is to transfer that ISA into another one after the year is up because the interest will not be so great.

Heart in the mouth moment when this building society was going to go bust.

muon · 18 Nov 2008 at 18:32

The Mad Rapper said:
I am considering opening a 1 Year ISA Bond with Bradford and Bingley. It pays 6.25% which is great.

I am a little confused as to what happens to the interest when the year is up? Do I lose the tax free component of the interest if I don't then put the money into another ISA vehicle, or do I get all of the interest regardless?

Apply for this

http://www.bradford-bingley.co.uk/savings/product/one-year-fixed-rate-eISA-issue4.asp

After 1 year it becomes a standard eISA. So after 1 year you get a payment of 6.25% after which you can leave it for as logn as you want in their variable eisa account, or shift elsewhere.