Are Midcounties Co-op development Bonds a good investment ?

SusanOxford

I am thinking of buying some of these bonds as the rates are much higher than savings accounts.  I realise my capital is at risk but is this a fairly safe investment for some of my savings ?

MX5huggy

Previously discussed some years ago but the same applies:-

https://forums.moneysavingexpert.com/discussion/5478729/coop-development-bonds-are-they-a-good-bet/p1

ColdIron

Might be of interest

https://forums.moneysavingexpert.com/discussion/5478729/coop-development-bonds-are-they-a-good-bet

SusanOxford

The situation now is rather different from 2016.  I certainly can't get 3% interest from a bank account or any safe savings account at the moment. Which is why I was wondering if these bonds might be considered a 'medium risk' option for just some of my savings.

MX5huggy

The situation is almost exactly the same as 2016, just the up side of these is slightly bigger when compared with safe savings options now available than it was.

There’s 2 outcomes possible, you get your stake plus interest back or you get nothing back. Is 3% a big enough up to cover the risk of getting nothing back. If your willing to take some risk with your money look at diversified investments where you invest in thousands of stocks and bonds so you are not exposed to the catastrophic failure of one company. 

masonic

SusanOxford said:

The situation now is rather different from 2016.  I certainly can't get 3% interest from a bank account or any safe savings account at the moment. Which is why I was wondering if these bonds might be considered a 'medium risk' option for just some of my savings.

This would be considered a high risk option. A corporate bond fund that is diversified across a number of bonds would bring the risk down.