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fixed bonds

i've been looking to invest in a fixed bond and found London capital and finance plc offering over 6% on a 2year fixed. Has anyone heard of them or is this too good to be true? can anyone help?

Comments

  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    If you do a search via Google or on this forum you'll find discussion threads on LC&F bond offers.

    Long story short, don't confuse this with a bank deposit where you get a much lower rate but have 100% protection against losing money. This is an investment that carries risk and while it may well be true that they will *try* to pay you your money back together with the stated level of interest, there is a risk that they won't be able to.

    That is why they have to offer 6% to make it sound interesting, because you might lose your money, and most people that don't want to risk losing money are not interested. The more interest they say they'll try to pay, the more people will be interested, but if it goes wrong you won't get your money back and won't be covered by the FSCS deposit protection scheme.
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