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Finding Tailored Financial Advice for the LGBT Community

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Time Deposit Bonds

A time deposit bond in the United Kingdom is a money deposit at a banking institution that cannot be withdrawn at all for a certain term or period of time, or unless a penalty is paid.  When the term is over it can be withdrawn or it can be held for another term.

deposit bondsGenerally speaking, the longer the term the better the yield on the money. The pros and cons of this are quite obvious to see.  Legally speaking, these are more complex procedures you’d be talking about than making a deposit at a building society; but bonds are not going to be your first choice of investment. Typically someone who invests in bonds will already have also invested in building societies, unit trusts, and will have money that they are prepared not to see for quite some time.

Medium or Long Term?

In choosing a bond, there are some things you need to know. Every financial institution can offer you bonds, and you can investigate websites, newspapers and magazines on their products, in great detail if you have an appetite for it.  In the very least, you should think about what you are trying to achieve from your medium or long-term fixed allocation, whether it is income, equity diversification or putting money in trust, and this will make your research much easier.

If you are ready to deposit then you will already know by this stage who the bond managers are. When considering products, you should try and understand what the manager is trying to achieve and deciding whether it fits with your plan.  This means you should know which bonds the manager is buying - government, investment grade and high-yield, why - what drives their buy, sell and hold strategy, and in what proportions.

And once the decision about which are the best funds is made, it is necessary to establish an acceptable review process to monitor the on going performance and suitability of the fund.

Once you’re in the bond, there are also some things you’ll need to know.  There will be a definite review process in place regarding your investment. We recommend you take advice before investing in time deposit bonds. If you would like to speak to an LGBT-friendly financial adviser, please enter your postcode under the box on your right to find an adviser near you.

Additional Reading

  • Investment Bonds

    Investment bonds can be a useful part of your portfolio. Read our guide to find out more and find LGBT-friendly financial advisers who can discuss your options.
  • Investment Trusts

    Investment Trusts are closed-end funds that are established to produce income through key investments. Contact us now to discuss your investment requirements.
  • Long Term Illness

    Read about how you can reduce the financial impact of sickness with long term illness insurance. We can put you in touch with LGBT-friendly financial advisers to discuss your options. i
  • Short Term Savings

    For short term savings when you need instant access to your money, the returns will be lower. Read our guide to find out more.
  • Medium to Long Term Savings

    Do you have long term savings plans in place? Why not check out our guide to the best ways to save money, get the best returns, but not lock it away in a pension.

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