5 Year @ 2.25% per annum

unkle

In case anyone is interested. Not quite your standard cash account but as long as you keep for 5 years the outcome is the same.

https://www.unitymutual.co.uk/savings-for-you/investment-bond/

NottinghamKnight

This isn't a savings account and capital loss is possible, not worth 2.25% return for a level of risk above cash savings.

unkle

I can't see anything about capital loss being possible?

NottinghamKnight

Yes, your due diligence is somewhat lacking.

unkle

NottinghamKnight said:

Yes, your due diligence is somewhat lacking.

? Maybe you'd like to highlight where it states you could suffer a capital loss?

lr1277

Perhaps Nott.. means the line in the key information document where it states the money will be invested in a number of asset classes. Since we don’t know what these asset classes are, there is the potential for capital loss.
I don’t understand how they guarantee no capital losses when they talk about investing.

unkle

It clearly states capital isn’t at risk, but agree it’s odd, but nottunghamnight seemed sure.....

George_Michael

unkle said:

It clearly states capital isn’t at risk, but agree it’s odd, but nottunghamnight seemed sure.....

I thought that the maximum compensation payable under the FSCS scheme was £85k so it's possible that any amount above this could certainly be at risk.

unkle

George_Michael said:

unkle said:

It clearly states capital isn’t at risk, but agree it’s odd, but nottunghamnight seemed sure.....

I thought that the maximum compensation payable under the FSCS scheme was £85k so it's possible that any amount above this could certainly be at risk.

Sane as any non NS&I bank account then.......

NottinghamKnight

No, there are two types of fscs cover, popularly this is the £85k for cash deposits, but there's also an investment part up to £50k (may now have increased to £85k) for investment products (you are obviously not protected from investment losses), so they can claim fscs cover. This isn't a cash savings account with the deposit based guarantees as if you want to pit it into an isa it goes into a stocks and shares isa, not a cash isa. Therefore capital is at risk. The advert probably wants reporting as it does appear to be misleading.

MrStanners

In the KID it states that the Investment Bond is a life assurance policy. They also state

"We are covered by the Financial Services Compensation Scheme (FSCS). If we cannot meet our obligations, you may be entitled to compensation under the scheme. Circumstances vary, but as this product is categorised as a long-term insurance product under the compensation scheme, it means you are covered for 100% of the claim with no upper limit for the claim amount in the unlikely event Unity Mutual default."

Not sure why it says you "may" be entitled to compensation and also the "Circumstances vary" part.