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So, just like many, my parents want to invest in: http://www.nsandi.com/65-guaranteed-growth-bonds?ccd=NALBAA since they are supposed to be quite good however, there is a genuine fear that the money allocated to this scheme might run out before everyone gets their share so-to-speak.

My parents would require to rip money from their ISA if they were to invest entirely but the problem is that if they are rejected they will then lose money on the ISA as such they want to be able to invest £500 and then up that payment to £10,000 if they are accepted.

Can this be done? Can they add money to a bond once it is opened?

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No; it's a bond, not a wrapper like an ISA. You can buy more bonds, assuming you do this before they run out. And it's a retail bond, so you can't sell it; you have to leave the money tied up for the term.

Remember, once you take cash out of an ISA you can't put it back - though you could of course put it back using this year's (£15k) allowance.

And as the bond has 20% tax deducted at source, it's maybe not a good idea to take money out and lose its tax free nature. You can get 2.4% tax free from Coventry Building Society.

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