Cahoot Fixed Rate BOND - SAFE?

carlostk

Does anyone know how much the FSCS investment scheme cover? Also 35k?

dunstonh wrote: »

If they are fixed term deposits then they are covered by the FSCS deposit scheme.

if they are bonds (in the correct sense) then they are covered by the FSCS investments scheme which has different limits.

if they are investment bonds (also misnamed but have been for much longer - generically they are single premium endowments or single premium whole of life assurance. You can see why they called them something different!!!) then they are covered by the FSCS life assurance limits (which is actually the most generous).

Some of the banks misname their fixed term deposits and call them bonds. They are not bonds but the marketing men seem to think that bonds makes them sound better. The ones you have are fixed term deposits and come under deposits protection.

Baldur

carlostk wrote: »

Does anyone know how much the FSCS investment scheme cover? Also 35k?

See HERE - "Investments: £48,000 per person. 100% of the first £30,000 and 90% of the next £20,000."

TimmyTyke

Below are two definitions from the Financial Services Consumer Protection website

Deposits: money placed in a bank or similar institution to earn interest or for safe-keeping.
Investment: a financial product in which money can be invested to earn interest or profit (although the value of investments can go down as well as up).

What this means is that all the 'fixed rate bonds' that are offered by the UK building societies will be covered by the £35,000 protection offered under the 'deposits' scheme(savings).
They (FSCP) mean an 'investment' to be a product that can go up or down in value which plainly a fixed rate product cannot do.

opinions4u

St James' Place Bank are looking to issue a new bond.

The James Bond.