Are Bonds covered by the FSA compensation scheme

mpooley

I have moved some money around to make sure I am covered by the scheme but now i realise i've never read anywhere wether a savings bond is covered?

I have just bought a West Bromwich building society 1 year savings bond - is this covered ?

thanks

Mike

dunstonh

They are not bonds. They are fixed term deposits and are covered under the deposit protection part of the FSCS. Building societies and some banks started calling them bonds for marketing reasons.

Bonds, in their correct sense, are covered under the investment protection of the FSCS and investment bonds (also misnamed but been so for decades) are protected under the insurance protection part of the FSCS.