Guaranteed Capital Bond

OAP1945

Hi hope its ok to ask here
We have a Guaranteed Capital Bond from RBS through Royal Scottish Assurance. Mature date Dec 2009. If anything happens to RBS are our savings protected by any of the protections bodys FSCS ??? etc. I know its very unlikely that we will get any interest but am worried that we might lose our capital.
Thanks in advance

dunstonh

If anything happens to RBS are our savings protected by any of the protections bodys FSCS ???

If its on the life assurance wrapper it falls under insurance FSCS protection. If its in an ISA or SIPP wrappers or unwrapped then it falls under the investment FSCS protection. However, the protection applies to the underwriter of the scheme and not the retailer.

I know its very unlikely that we will get any interest

Correct. It doesnt pay interest. its not a savings account or fixed term deposit.

OAP1945

Sorry wrapper, unwrapped ?? underwriter, retailer ??
told you I was a newbie

dunstonh

Investment can be placed in various tax "wrappers". The UK has lots of these but two of most popular are ISAs and pensions. Investment bonds are another. They are containers for your investment and get treated differently for tax.

Guaranteed equity bonds can be held in ISAs, unwrapped (meaning not in any tax wrapper but treated as unit trust), investment bonds (life assurance) and SIPPs (a type of pension).

FSCS protection on investments falls under investments or insurance depending on which wrapper you use to hold the investment. Either way you are protected upto 48k (on a 50k investment) with investments and unlimited with insurance (with a minimum of 90% of your investment)

OAP1945

Thanks thats a relief.