Trying to remember name of a savings company

Jelli

The interest rate wasn't higher than everywhere else because everywhere else aren't asking for 50,000 as a minimum saving. I thought the interest rate was tied to that steep entry.

OldMusicGuy

Jelli wrote: »

The interest rate wasn't higher than everywhere else because everywhere else aren't asking for 50,000 as a minimum saving. I thought the interest rate was tied to that steep entry.

The interest rate is higher because (in the real world) it is a BT corporate bond which is a bit more risky than an FSCS-guaranteed savings bond, hence the higher interest rate. It's nothing to do with the required investment level (which varies with corporate bonds). The more risky a corporate bond, the higher the interest rate. BT, being a fairly well-established company would be relatively low risk. The interest rate on corporate bonds will be higher for smaller, less well-established companies because that's how they attract funding. Better interest rate but more risk.

That's why it's important to understand the difference between regulated, FSCS-protected savings products and corporate and other bonds, which are not FSCS protected.

Jelli

OK, thanks OldMusicGuy

reeac

Seeing the phrase "wealth management" or even just "wealth" always raises warning flags for me. I see it as just ground bait.

AnotherJoe

Jelli wrote: »

The interest rate wasn't higher than everywhere else because everywhere else aren't asking for 50,000 as a minimum saving. I thought the interest rate was tied to that steep entry.

Interest rate is pretty much always tied to risk. Yes there might be a very small bump for larger amounts or for a minimum investment but its not going to be FIFTY PERCENT more than what you can get elsewhere for the same level of risk.
A cursory look round a reputable site, such as here, would have showed other savings "" (lets not use the "B" word) with rates at well under 3% even for five year fixed and with amounts allowed up to and beyond £50k.


Of course, a low % rate doesn't necessarily mean less risk, if its from a scammer it just means the scammer has moved on with their approach. But "too high" interest rate definitely means more risk, or scam. And fifty percent more (look at it in relative terms not numbers) is way too high.