According to a study carried out by the Abbey National recently a number of UK people are dipping into their savings in order to pay their ongoing bills.
The Abbey National was looking specifically at money held in ISAs and, having seen around GBP6 billion taken out of them asked customers what the money had been used for. Just over 30 percent of people said it was to cover day to day expenses, the most popular answer provided.
Although it can seem easy to use savings to cover costs the issue comes a little later said an Abbey National spokesman. If a cash ISA had the maximum put into it then any withdrawals cannot be made up later, leaving the account holder with a reduced return through interest.
The Abbey National is making a one year fixed rate bond available for a limited period, with an interest rate of 6.75 percent.
To earn this high rate the bond needs an investment of at least GBP30,000, though anything from GBP1 upwards to that figure will still return a very attractive 6.35 percent. The Abbey National investment bond is on limited availability, with a window of less than a month to get money into it. Starting on August 4 the offer closes at the end of August.
The market really likes fixed rate savings bonds said an Abbey National spokesperson, hence their introduction of this particular one now. Anyone interested is advised to act quickly to ensure availability.
A new Legal and General Portfolio bond will be available from 21 July, ideal for financial advisors to use when putting together an investment portfolio for their clients.
Three different charging options are available, a wide choice of funds as well there being no charge to swap between different funds. Legal and General have listened to the needs of financial advisors and come up with a portfolio bond that seems to deliver what they have asked for.
The different options provided by Legal and General also cater for different risk profiles along with the option to take regular withdrawals. All in all investors will find all their bases covered with this new bond offering.
