The majority of Brits are more likely to associate the word ‘bond’ with fictional spy James Bond over the savings product.
A survey of over 2,000 Brits revealed that 70 per cent of Brits associated ‘bond’ with the secret agent, according to new data from Moneyfarm.
This trend was consistent across genders, though 41 percent of respondents aged 65 and older did associate the term with the investment product.
Almost 30 per cent of Brits admitted to not even knowing what a savings bond is, while 82 per cent said they were not invested in bonds, with an additional five per cent being unsure whether they were invested in bonds or not.
“While it’s quite amusing that ‘bond’ brings to mind our beloved spy for many Britons, it’s crucial we shine a spotlight on the less glamorous but equally important savings bond – especially now when they’re offering such competitive returns,” said Chris Rudden, head of investment consultants at Moneyfarm.
The survey also highlighted that cash remains the most popular choice for retail investors, with nearly 57 per cent reporting the use of cash ISAs. Stocks and shares ISAs were second most favoured, with a third choosing them.
Meanwhile, a majority of Brits said they were mainly using online sources for investment advice, with only 25 per cent preferring to use professional advisors.
“It was also really interesting to see how people across the UK make their investment decisions – as a majority of them seem to be relying on online research instead of consulting with financial advisers. This tends to create an echo chamber effect that can lead to missed opportunities,” added Rudden.
Surveying just active UK investors, and the outcome was just as poor for bonds, with only 22 per cent saying they invest in the asset.
Significantly, younger investors showed more interest in bonds, with 57 per cent of those aged 18-24 investing in them, compared to only 23 per cent of those aged 35-44 and 18 per cent of those aged 45-54.
Among those who invested in bonds, the primary motivator reported was for seeking steady returns (38 per cent), followed by diversification (27 per cent), and tax benefits (10 per cent).
Nine per cent of the respondents said they only invested in bonds after they had maximised their ISA allowance.