wellygary:

 

Bonus Bonds are an interesting quirk of history that would be classed as  tax avoidance if someone tried to set it up now :)

 

They are a great place to stash money to keep it out of the hands of government departments who class interest as a source of income

 

(they are "winnings" similar to a lotto payout),

 

But they are a rotten place if you want to actually make a return,  as fees and tax gobble up almost 50% of the funds return, so you get much less in the hand compared with a simple term deposit...

 

 

 

 

 

Umm...there are no fees. When you win a prize e.g. $20, it is $20.