In one paragraphMost people in the UK buy bonds and bond funds through an investment platform, inside a Stocks and Shares ISA or a General Investment Account. Our sister site keeps a plain list of large platforms that are open to the public, in alphabetical order, with nothing paid for a place on it.
This guide does not sell anything, and it does not link to any one provider. The only route onward is a list, kept on our sister site so that it is maintained in one place.
Which accounts do people use?
- A Stocks and Shares ISA. Returns inside the account are free of UK income tax and Capital Gains Tax, up to the yearly ISA allowance.
- A General Investment Account. No yearly limit, and no ISA tax treatment. Interest and gains are taxed in the usual way.
A pension can hold bonds and bond funds too, but pensions are outside the scope of this guide.
If you are still deciding between owning a single gilt and owning a fund, chapter III covers gilts and chapter VI compares funds with single bonds.
What is an investment platform?
A platform is a company that holds your investments for you and lets you buy and sell them online. Different platforms offer different investments, services and charges. Some offer individual gilts and corporate bonds as well as funds, and some offer funds only, so it is worth checking before you open an account.
See the list of platforms on targeted-support.uk, opens our sister site
Please noteThe list is not a ranking and not advice. Whether any investment or platform suits you depends on your own circumstances. If you are unsure, consider regulated financial advice.