Charterhouse /VW

edited 30 November -1 at 1:00AM in Savings & Investments
7 replies 1.1K views
StravinskyStravinsky Forumite
46 Posts
edited 30 November -1 at 1:00AM in Savings & Investments
I've been looking for a year bond to invest in for £50k and came across the Charterhouse / VW bond which seems to offer just over 5%. I've looked for reviews and couldn't find much. Its a step up from the usual 1.5 - 2% that most 1 year bonds offer so I'm naturally suspicious about it. It says it is FSCS and FCA compliant. Would that normally mean it is covered under the compensation scheme, as it doesn't actually say that on the site. Would appreciate input.


  • eskbankereskbanker Forumite
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    'Bond' is a disconcertingly vague term that can be used to cover both capital-protected deposit accounts (aka savings) but also investments that entail risk of loss.

    As this is the latter, if you're looking for capital protection, step away from this one....
  • Thanks. It did seem a little too good to be true, hence why I asked for advice from those more experienced
  • londoninvestorlondoninvestor Forumite
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    The website is a bit thin, but taking it at face value in claiming FSCS protection...

    The FSCS protection here would be the protection for investments, not savings. This protects you against some types of misadministration or fraud, but not against a loss in value of the underlying investment.

    So if Charterhouse takes your money and fails to actually invest it in the VW bond, you should be protected up to £50k. If VW defaults on the bond, the FSCS protection gives you nothing.

    Contrast that with an FSCS-protected bank deposit. If the bank becomes unable to repay your deposit for any reason whatsoever, you'll get your money back up to £85k.

    How did you come across this investment, out of interest?
  • This Charterhouse / VW Bond is a fraud. Charterhouse does not do this type of investment.

    The website is registered in Russia and is nothing to do with Charterhouse or VW,

    Charterhouse has reported this to the FCA, VW and other relevant authorities.

    How do I know this ? I work at Charterhouse and we have had calls from people who were checking. If anyone has information re where this is being advertised please reply to this post so we can ensure warnings are posted where possible.
  • Can't access the bond website..
  • AlexlandAlexland Forumite
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    Yes it looks like the website has been taken down - it was working a few days ago.

    I would avoid this like the plague
  • badger09badger09 Forumite
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    Part of the Furniture 1,000 Posts Name Dropper
    Can't access the bond website..

    Why do you want to?
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