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Bonds - How much are they guarenteed

Have around £200K that I want to remove from bank to get it below the guarentee level. Saw an advisor at SJP who said put it into a bond (corporate I think) as its 90% guarenteed. Is this correct as found other info which says that only upto £48K will be covered

Comments

  • gozomark
    gozomark Posts: 2,069 Forumite
    much more info required

    is it corporate or not ?
    who is it guaranteed by ?
  • Yes i believe Corporate Bonds
    Guarenteed by the Government
  • gozomark
    gozomark Posts: 2,069 Forumite
    Yes i believe Corporate Bonds - need a definite on that, not a believe

    what is the product ?
  • dunstonh
    dunstonh Posts: 121,280 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Corporate bonds are not guaranteed by the Govt.

    However, if a portfolio of funds has been put in place that includes fixed interest funds then some of these may includes gilts, corporate bonds and other bonds. Gilts are issued by the BoE but the rest are not.

    If you have been put in an ISA and unit trusts/oeics then the investments protection scheme applies. If you have been put into an investment bond then insurance protection scheme applies.

    FYI, SJP is not independent. When getting advice you should seek independent advice. You should also be able to understand the information given to you. Otherwise what is the point of an adviser.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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