Best Saving Options (SS ISA's)

Evening guys

Just looking for some opinions on the best use of our monthly savings.

2 years ago we paid off our mortgage; after overpaying for 5/6 years and we now save around £2k per month in a standard Halifax savings account; at the moment we have about £20k and have recently been told that we'd probably be best opening individual Stocks and Shares ISA's.

I have had a brief look online and have found one from London Capital 8% for a 3 year investment and wonder if anyone can break this down the fine details of this in layman's terms; what are the risks ?

https://www.londoncapitalandfinance.co.uk/isa?utm_source=google&utm_medium=cpc&utm_campaign=Cash-Rate&utm_content=TIR

Thanks for your help

Comments

  • Alexland
    Alexland Posts: 9,652
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    edited 24 February 2018 at 11:55PM
    I will let LC&F explain how extremely high risk they are and your lack of normal protection. Personally I feel a lot more comfortable having my hundreds of thousands of pounds in the stock market which could fall in value by 50% at any moment (and then gradually recover) than in this high risk product.

    https://www.londoncapitalandfinance.co.uk/disclaimer

    "Investing in the bonds carries significant risk and you may lose part or all of your investment. Investors should note that repayment of the bonds offered by London Capital & Finance Plc, and the payment of interest on the bonds, depends on the performance of loans made by London Capital & Finance Plc to various small and medium sized borrowers. In the event that these borrowers default on the loans, investors are likely to lose some or all of their investment. Investment in the bonds of London Capital & Finance Plc is therefore speculative and involves a significant degree of risk."

    and

    "The protections afforded by the Financial Services and Markets Act 2000 including recourse to the Financial Ombudsman Service and compensation entitlements under the Financial Services Compensation Scheme do not apply to the bonds offered. All prospective investors and Bond holders are strongly recommended to seek advice on the suitability of this investment."

    Alex.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    edited 25 February 2018 at 12:16AM
    LC&F do not provide ISAs of any sort, S&S or otherwise. There is no FSCS protection and the bonds they sell are incredibly high risk. They are not even a retail investment product.

    Don't invest in this. If you want to open a S&S ISA then please do so with a reputable company who are regulated by the FCA and part of the FSCS protection scheme. There are lots of providers to choose from and they will charge a variety of diferent fees for their services. I have included a link below to a table that compares the different offerings, but the first thing you actually need to do is decide on which funds you want to invest in. For a well-diversified investment it wouldn't hurt you to read up a bit about multi-asset funds like Blackrock Consensus, HSBC Global Strategy, Vanguard LifeStrategy, or L&G Multi Index. Do a search for these on Trustnet to begin to find out a little more (second link).

    http://monevator.com/compare-uk-cheapest-online-brokers/

    https://www.trustnet.com/
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