Warren Evans bond

RedRuby_2

My dear MSE forumites,

I just checked my email and came across an email inviting past customers to buy a Warren Evans 3 year retail bond which will earn 7.5% pa.

With interests rates on any savings very low in general, this seems like a good return. However, I have never heard of this being done before or bought a bond in this way and therefore i would like some helpful advise as to whether or not this bond is a good investment. (link below)

http://www.warrenevansbond.com/the-proposal/

Linton

This is a corporate bond whereby a company will pay you better than bank interest to use your money for three years to advance their business after which they will return it. This of course depends on them not having gone bust in the meantime. That is the risk you take which balances out the higher interest.

I personally would be wary of buying a bond in a small company I had never heard of and knew nothing about. If you, as a small investor, want to invest in corporate bonds you may wish to look at bond funds which buy a large number of different ones and so greatly reduce the risk of you losing a significant amount of money.

jimjames

Lots of feedback already on another thread

https://forums.moneysavingexpert.com/discussion/4799673

Be aware it is not a savings account and you could lose all your money

bigadaj

OP, there's another thread with some comprehensive replies running on this, just do a quick search and it may answer some of your queries.