Fixed Rate Bond

Aretnap

mrseyes said:

Speculator said: 

mrseyes said:

I was looking into putting my money away (over 100K) in fixed term bond for 5-10yrs. 
Came across DBS www.bds-london.co.uk and are offering advice on bonds.
But i don't know much about this company and was wondering if anyone tell me more about them please. 

Thank you 
 

We have a DBS bank in Hong Kong and they have a branch in London. 

Sorry I meant BDS London. And their link 

 www.bds-london.co.uk. They have offered me fixed rate bonds: Gilt bond 6% until 2028, Barclay bond 5.75% until 2026 and HSBC 6.5% until 2023. It tempting but i just need to know more about them.

Classic scam. The bonds exist and were issued by real companies when interest rates and bond yields were higher than they are now. If you want to buy them you can get them via a reputable stockbroker, but you will have to pay more than their face value, meaning that the effective interest rate you receive is much lower than the 6%ish "coupon".

In practice if you hand over the money to these chances they will not buy the bonds for you, they will simply disappear. And next month they will set up a new website with a new name which sounds like a real bank, and find some new victims.

Walk away and do not contact them again. Beware of any cold calls you receive as they will now have you down as a potential sucker. 

doe808

mrseyes said:

Speculator said: 

mrseyes said:

I was looking into putting my money away (over 100K) in fixed term bond for 5-10yrs. 
Came across DBS www.bds-london.co.uk and are offering advice on bonds.
But i don't know much about this company and was wondering if anyone tell me more about them please. 

Thank you 
 

We have a DBS bank in Hong Kong and they have a branch in London. 

Sorry I meant BDS London. And their link 

 www.bds-london.co.uk. They have offered me fixed rate bonds: Gilt bond 6% until 2028, Barclay bond 5.75% until 2026 and HSBC 6.5% until 2023. It tempting but i just need to know more about them.

Of course its tempting. Its a scam.

mrseyes

i am new to all this, but i would appreciate some names of reputable stockbroker please. 

AnotherJoe

If you are new to all this then asking for a reputable stockbroker is like asking for the name of a good scalpel supplier before you've started your first aid course.

A good place to start would be Monevator.

Another_Saver

said:

Speculator said: 

mrseyes said:

I was looking into putting my money away (over 100K) in fixed term bond for 5-10yrs. 
Came across DBS and are offering advice on bonds.
But i don't know much about this company and was wondering if anyone tell me more about them please. 

Thank you 
 

We have a in Hong Kong and they have a branch in London. 

Sorry I meant BDS London. And their link 

They have offered me fixed rate bonds: Gilt bond 6% until 2028, Barclay bond 5.75% until 2026 and HSBC 6.5% until 2023. It tempting but i just need to know more about them.

Scam.
Also you can buy all these bonds via a normal stockbroker, but the yield you're interested in is the running yield or yield to maturity not the quoted yield.
The FCA are in a weird situation right now in that they're having to pay to take out Google ads that would appear next to scam ads - so it's a win win for Google and indirectly it's the honest/less dishonest parts of the finance industry, and their customers, ego are paying for this.

dunstonh

 www.bds-london.co.uk. They have offered me fixed rate bonds: Gilt bond 6% until 2028, Barclay bond 5.75% until 2026 and HSBC 6.5% until 2023. It tempting but i just need to know more about them.

This is a very common scam. These are genuine gilts/bonds.  However, they won't invest your money in these.  They will take your money can give you fake paperwork to make you think you are invested in these. They will be long gone before you realise you have lost the lot. 

i am new to all this, but i would appreciate some names of reputable stockbroker please. 

Clearly are you very new to this as there is nothing a stockbroker can do for you in respect for fixed term deposits.   What do you think a stockbroker can do for you?  Or maybe tell us what you want to achieve and we can point you in the right direction.

whitesmith

As for specific question "i don't know much about this company and was wondering if anyone tell me more about them please" then the answer is no, I cannot tell you anything about them - they have no web presence other than that link and if you take away only one rule for parting with your money it is never give your money to someone you know nothing about.

As everyone has said, it is most likely a scam. 

If you are still not convinced, then the (ha ha) 'guilt bond' offers 6% whereas the 10 year guild yield is currently 0.269%

xylophone

If you need help with managing your money, had you thought of consulting an Independent Financial Adviser?
https://adviserbook.co.uk/
You would tick  confirmed independent and investments when the menu comes up.

whitesmith

Good advice from @xylophone.

Aretnap

mrseyes said:

i am new to all this, but i would appreciate some names of reputable stockbroker please. 

I could suggest companies like Hargreaves Lansdown but it probably wouldn't help because I don't think these bonds are what you're looking for. It is possible to buy them, but I do not recommend that you do.

To illustrate how they work in real life, HSBC did indeed in 1998 issue a bond maturing in July 2023 and paying an interest rate ("coupon") of 6.5%. In other words the bonds cost say £100 each, HSBC pay £6.50 interest annually to whoever owns them, and in 2023 they will buy them back at £100 each

https://www.hl.co.uk/shares/shares-search-results/h/hsbc-bank-plc-6.5-2023

However HSBC no longer issue bonds paying that level of interest (why would they?) so if you want to buy them you will have to find someone who already owns some who is willing to sell you them. Now in the current climate nobody is going to give up a bond paying £6.50 per year for £100 - again why would they? The current market price is actually about £114 per bond. So you would buy the bond for £114 (plus a dealing fee), over the next 2 and a bit years HSBC will pay you £6.50 two or three times (depending on when in the year the interest is due) and then in July 2023 you would get £100 for your bond.* Do some maths and it works out roughly comparable to a best buy fixed rate savings account. But unlike a savings account it has no FSCS protection - if HSBC go bust between now and July 2023 (unlikely, but not impossible) you will not get your money back and nobody is going to bail you out or compensate you. So for the ordinary saver/investor at least the effective interest rate does not justify the extra risk over a decent savings account. They are actually bought mainly by pension funds and large institutions who do not have access to best buy FSCS protected savings rates.

The reason scammers "offer" bonds like these is that they have a household name attached and if the victim does a quick Google they find that the bond does indeed exist, and the jargon filled financial pages do indeed say "6.5%", so to the uninitiated the offer seems legitimate. However while they exist, they cannot in reality be used to gain a real return of 6.5%.

If you are asking how you can get a guaranteed, or even relatively safe, interest rate of 6.5% in the current climate I'm afraid the simple answer is that you can't.