NISA with 6% variable rate?
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Kingsta93
Posts: 2 Newbie
Hi,
So recently I was approached by a company that offer a 5% variable rate on an ISA. They currently manage XXX millions and have been able to achieve 5% returns each year for clients. The money is all safe if I do chose to invest and the company is FCA regulated.
Anything above or at 3% looks to be better than anything offered by anyone in the current market. Do you think this is a good place to keep my money?
Thanks for the advice.
(Note: I'm not allowed to post the companies name)
So recently I was approached by a company that offer a 5% variable rate on an ISA. They currently manage XXX millions and have been able to achieve 5% returns each year for clients. The money is all safe if I do chose to invest and the company is FCA regulated.
Anything above or at 3% looks to be better than anything offered by anyone in the current market. Do you think this is a good place to keep my money?
Thanks for the advice.
(Note: I'm not allowed to post the companies name)
0
Comments
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If it was such a fabulous deal, why would they need to approach potential investors and why would it all need to be kept secret? Ask yourself why they'd be able to offer returns way out of step with the rest of the market.
Then run and don't look back....0 -
If it was such a fabulous deal, why would they need to approach potential investors and why would it all need to be kept secret? Ask yourself why they'd be able to offer returns way out of step with the rest of the market.
Then run and don't look back....
Judging from your reaction, this is probably the best return on an ISA the market has to offer and hence why you're sceptical which is understandable.
Also it's not being kept secret, the company hasn't publicly announced it is entering the ISA market and therefore i've decided not to release the name.
Thank you for the response though, good advice.
Also the fact that the client's capital is insured against losses seems like a great bonus0 -
Also the fact that the client's capital is insured against losses seems like a great bonus
Insured by whom? How? Have you seen the insurance documents?
The only reliable "insurance" for savings and investments is via the FSCS.So recently I was approached by a company that offer a 5% variable rate on an ISA.
Without knowing the construct of this offer, it is difficult to comment further but it sounds as if it might be one of those savings plans that are put together by Marketing departments and that appeal to people who will not, or cannot, understand the pitfalls of the offer.0 -
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Judging from your reaction, this is probably the best return on an ISA the market has to offer and hence why you're sceptical which is understandable.
Also it's not being kept secret, the company hasn't publicly announced it is entering the ISA market and therefore i've decided not to release the name
No, they don't want you to release the name in case anyone can Google it and find out they're not what they say.
There is no way any genuine UK company is offering a fscs protected savings account at the moment and approaches you in secret to offer it.
There are plenty of better returns you can get but they involve some risk. As does this one but the risk is way higher than you seem to think with a big chance of losing all your money.
Happy to be proved wrong but nothing you've said so far would indicate it's genuine.
PS
FCA regulated is not the same as fscs protectedRemember the saying: if it looks too good to be true it almost certainly is.0 -
OP - if you still think this is a good idea, at least Google the company yourself to find out their reputation (from multiple reputable sources).
And if you go ahead, play with money you can afford to lose, because the capital protection insurance sounds even fishier to me than the promised returns...as jimjames says, high returns are achievable in many places, but risk is the usual trade off.0 -
That's not so good since I've been offered one with 9%, fixed for three years. I'm also going to keep the name secret.0
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9%?
You're being cheated.
I've been offered 15% compounded for 17 years, guaranteed by the government AND insured by HMRC!
I would post a link but Al Qaeda would be able to track me down if I did. Sorry.0 -
Judging from your reaction, this is probably the best return on an ISA the market has to offer and hence why you're sceptical which is understandable.
Also it's not being kept secret, the company hasn't publicly announced it is entering the ISA market and therefore i've decided not to release the name.
Thank you for the response though, good advice.
Also the fact that the client's capital is insured against losses seems like a great bonus
In some ways I really hope you are posting as a stooge for the company that is offering this product and aren't someone seriously considering it.
If you are genuinely posting then it just confirms any fears I have about the pension freedoms that come into effect next year and how likely it is that scammers will get their hands on a fair chunk of that money from ripping off consumers with such "guaranteed" products.Remember the saying: if it looks too good to be true it almost certainly is.0 -
sorry to burst your bubble.
sounds like a con to me.
cons work best when things aint great.
best isa's are languishing around 2%. which is rubbish!
a big clue is that they approached you!
con men (and women) usually approach you!
its just has con written all over it!0
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