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London Capital & Finance Investment Bonds

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Hi, I have been looking for best interest rates on savings and I came across the above company. I have never heard of them before but the fixed interest rates look very favourable compared to anything else I have come across e.g.8% interest per annum for 3 years. Am I missing something? I would be grateful for info/advice from anyone who has dealt with them.

Thanks.

Comments

  • veryintrigued
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    JacquiP wrote: »
    Am I missing something? .

    I suspect its them who are missing something - specifically in their FAQ How is my money protected section.

    Also to download the policy document you have to confirm the following criteria:
    I have an annual income of £100,000 or more in the past year.
    I have net assets of £250,000 or more. NB: not including the house I live in and – if applicable – any rights under an insurance contract or pension or termination benefits.
  • jimjames
    jimjames Posts: 17,686 Forumite
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    JacquiP wrote: »
    H Am I missing something? I would be grateful for info/advice from anyone who has dealt with them.

    Thanks.

    I guess it depends if you're prepared to lose 100% (ie ALL) of your money. If you're happy for that then no you're not missing anything but I'd question why you'd want to use something like this when a Stocks & Shares ISA would be far less risky.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Linton
    Linton Posts: 17,248 Forumite
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    There have been at least 69 posts on this already - try here.
  • seacaitch
    seacaitch Posts: 272 Forumite
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    The crucial thing to understand is that these are completely different products to FSCS savings or deposit accounts with a bank, building society or NS&I, although the marketing means that the unwary may not immediately realise that.

    If you've not immediately grasped this, and your use of the word 'savings' suggests you haven't, then there is almost zero chance that this is a suitable product for you.
  • dunstonh
    dunstonh Posts: 116,696 Forumite
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    I have never heard of them before but the fixed interest rates look very favourable compared to anything else I have come across e.g.8% interest per annum for 3 years.

    What you are comparing is similar to comparing a family hatchback with a helicopter. i.e. very little in common but both are methods of transport. In this case, you are comparing a mainstream guaranteed deposit product with no loss of capital possible (to FSCS limit) to a 100% loss potential investment instrument (it is not even a retail investment product) with no FSCS protection.

    This company pops up nearly every week on this site. Do a search for old posts and you will see all the reasons to not use them.
    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.
  • JacquiP
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    Thanks for the replies. I thought it seemed too good to be true. I am certainly not in a position to risk my savings!
  • dunstonh
    dunstonh Posts: 116,696 Forumite
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    JacquiP wrote: »
    Thanks for the replies. I thought it seemed too good to be true. I am certainly not in a position to risk my savings!

    Everything has risks. Even cash savings (inflation risk and shortfall risk being two). Some investment risk options are going to be suitable for some of your needs and going with cash on those could actually be higher risk than going with investments. In those cases, you take appropriate risk. This LC&F bond is gung ho risk. It isnt meant to be retailed like a financial product. If you saw it on a comparison site then your comparison site is in breach as they should not be making it available. You should question your research if you continue to use that site. The only place you should see it is in obscure places as it is not meant to be retailed like a financial product.
    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.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    dunstonh wrote: »
    Everything has risks. Even cash savings (inflation risk and shortfall risk being two). Some investment risk options are going to be suitable for some of your needs and going with cash on those could actually be higher risk than going with investments. In those cases, you take appropriate risk. This LC&F bond is gung ho risk. It isnt meant to be retailed like a financial product. If you saw it on a comparison site then your comparison site is in breach as they should not be making it available. You should question your research if you continue to use that site. The only place you should see it is in obscure places as it is not meant to be retailed like a financial product.

    It has certainly been advertised in the national press.
  • jimjames
    jimjames Posts: 17,686 Forumite
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    JacquiP wrote: »
    Thanks for the replies. I thought it seemed too good to be true. I am certainly not in a position to risk my savings!

    Ouf of interest where did you see it advertised?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • takethemon
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    jimjames wrote: »
    Ouf of interest where did you see it advertis

    http://best-savings-rate.co.uk/v4?gclid=CPns_d2n99ECFdIV0wod1P8NxQ
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