4% AER bond with Castle Trust

I saw their website.

I find it very hard to believe that their bond is covered at all and I wonder if that is being investigated for giving incorrect information. Corporate bonds are not covered by FSCS at all if the company goes bust so I have no idea how they seem to be suggesting that it is.

Can anyone else shed any light on it?

ColdIron wrote: »

Discussed in a previous thread
http://forums.moneysavingexpert.com/showthread.php?t=5030614&highlight=

I still can't see how they can get away claiming it is covered by FSCS as per Dunstonh's comment in the thread above.

I wonder if it is just a matter of time before it gets pulled as they seem to be totally misrepresenting the protection offered. Much the same as if a S&S provider was to say that shares were covered by FSCS in the event of a company going bust.

Waiting 3-5 years to receive any money means they are getting money lent for up to 5 years before paying out. They also quote an AER figure which seems equally misleading as the interest is not paid so cannot be compounded.

I guess the key hinges on their use of the word MAY. May as in possible or may as it will never ever happen.

Please remember that investments can go down, as well as up, and you could get back less than you invested.

You risk losing capital should Castle Trust become insolvent. In that event investors may be eligible for cover under the Financial Services Compensation Scheme for up to £50,000 of loss.