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Craft Gin Club Bond 2

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Comments

  • Eyeful
    Eyeful Posts: 1,253 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    edited 7 July 2022 at 9:10AM
    This is a very high risk bond.  It is an investment mini bond so you could lose all of your money. It is not protected by the FSCS.

    Basic self defense;-
    1.Best basic Low Risk, 5 year savings bond protected by the FSCS (up to £85k) = 3.3%
    2. Latest FTSE 100 dividend yield = 3.4% (this is an investment)

    This bond mentions 8%.
    So this single company, is to pay you more than twice what the 100 largest companies in the UK can offer. Hence Very High Risk!

    If anyone contacts you out of the blue, offering advice on what to do with your money or investments. Ignore them.

    Checked out who sent you the e-mail. It may not be this company but a scammer
  • Thanks WMB, of course interest rather than dividends, so doesn’t need to be paid out of income. Additional borrowing would add to the deficit position though, and importantly, I think they have to make profits of about £2.5mn before being in the black and be able to repay any investors.So although as Gin club member, it was tempting to receive interest in specie, i.e. gin boxes, it wouldn’t be worth the (quite likely) risk of losing all of the minimum investment of £1,600.
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