Legit 8% fixed ISA with LCF?

maffyew86

Hi all,
I found this ISA available from London Capital and Finance PLC. They have 2 fixed rate ISA's available; 6.5% for 2 years or 8% for 3 years.
I'm not allowed to post the link as a new user but if you google the company I'm sure you'll find it.
Since the recommended ISA's and bonds on MSE only offer about 2.2% max I was wondering about the legitimacy and security of this product.
Any thoughts on this?
Thanks!
Matt

eskbanker

maffyew86 wrote: »

Hi all,
I found this ISA available from London Capital and Finance PLC. They have 2 fixed rate ISA's available; 6.5% for 2 years or 8% for 3 years.
I'm not allowed to post the link as a new user but if you google the company I'm sure you'll find it.
Since the recommended ISA's and bonds on MSE only offer about 2.2% max I was wondering about the legitimacy and security of this product.
Any thoughts on this?
Thanks!
Matt

Likewise if you use the forum search facility you'll find plenty of information about this (mostly involving bargepoles), but if you haven't found that feature yet then let me summarise for you: if it looks too good to be true then there's a reason for that! While masquerading as a savings product, it's nothing of the kind and entails risk of capital loss, as per the disclaimer on their website that most seem to miss when being seduced by the apparently impressive interest rate....

dunstonh

Since the recommended ISA's and bonds on MSE only offer about 2.2% max I was wondering about the legitimacy and security of this product.

As you already know as you have read the information from LC&F, you are not comparing like for like.

The MSE articles are on cash ISAs. LC&F are high risk, 100% loss potential investments with no FSCS protection.

What LC&F offer is legitimate but it is nowhere near secure. It isn't even a retail financial investment. It is similar to buying a single company share.

but if you google the company I'm sure you'll find it.

And google puts MSE forum posts on this right at the top. Possibly the same links that led you to post here in the first place. Our responses are not going to differ.

jimjames

maffyew86 wrote: »

Hi all,
I found this ISA available from London Capital and Finance PLC. They have 2 fixed rate ISA's available; 6.5% for 2 years or 8% for 3 years.
I'm not allowed to post the link as a new user but if you google the company I'm sure you'll find it.
Since the recommended ISA's and bonds on MSE only offer about 2.2% max I was wondering about the legitimacy and security of this product.
Any thoughts on this?
Thanks!
Matt

Are you happy to lose all your money? Have you read all the disclaimers on their site and agreed with them?

They may appear on sites as below saying Best SAVINGS rates but it is in no way a savings account, it's more risky than a share based ISA.

http://damn-lies-and-statistics.blogspot.co.uk/2017/09/london-capital-finance-isa-savings-bond.html

A tick in a box saying "security" doesn't mean your money is protected

TBC15

Mental, No.

RoyaleMale

Where did the op get the word ISA from? This isn't even an ISA.

Recommended ISA's on MSE may only offer about 2.2% max but that comes with Financial Services Compensation Scheme of up to £85,000 will be safe if a bank or building society collapses.

I wouldn't go near London Capital with any of my savings.

eskbanker

RoyaleMale wrote: »

Where did the op get the word ISA from? This isn't even an ISA.

https://www.londoncapitalandfinance.co.uk/isa perhaps, where it's risibly described as "A simple and transparent ISA for individuals"?

adindas

RoyaleMale wrote: »

Where did the op get the word ISA from? This isn't even an ISA.

Recommended ISA's on MSE may only offer about 2.2% max but that comes with Financial Services Compensation Scheme of up to £85,000 will be safe if a bank or building society collapses.

I wouldn't go near London Capital with any of my savings.

It is classified as Innovative Finance ISA (IFISA) so comparing it with Cash Isa under FSCS guarantee is not comparing like for like.

Getting 8% return on this kind of ISA is not uncommon due to capital at risk nature.

Some people are preparing to take some level risks in return for higher interest rate.

bail-in

There is newer active thread on the LC&F Innovative Finance ISA here:

https://forums.moneysavingexpert.com/discussion/5863773/lcf-isa&utm_source=MSE_FS&utm_medium=Email&utm_term=03-Jul-18#1