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1 year bonds
PARTHELAST3
Posts: 3 Newbie
My NS&I bond just matured. Looking for another but only a year and greater than 1.5%. Castle Trust offering 2.8% but not on any comparison site. Anyone any experience of these?
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Comments
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PARTHELAST3 wrote: »My NS&I bond just matured. Looking for another but only a year and greater than 1.5%. Castle Trust offering 2.8% but not on any comparison site. Anyone any experience of these?
The reason they pay a higher rate than the banks is because it isn't a bank deposit so you have higher risk of loss, which is also the reason it isn't on (reputable) comparison sites; you could do a search on this forum for similar threads.0 -
Thank you for your for your reply. Very helpful0
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RoyaleMale wrote: »Castletrust state you risk losing capital should Castle Trust become insolvent. But also mentions Castle Trust is authorised and regulated by the Financial Conduct Authority and is a participant in the Financial Services Compensation Scheme (FSCS).
So any deposits should be protected up to £85,000.
No no no - they are not deposits.
These are considered investments, and a £50,000 cover may apply.
https://www.castletrust.co.uk/financial-services-compensation-scheme-investments
But, the FSCS does not cover investment losses, and so there is a fair chance that in the event of default, an investor will not benefit from any FSCS protection.I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.0 -
Well the £85,000 protection definitely does not applyOriginally Posted by RoyaleMale
Castletrust state you risk losing capital should Castle Trust become insolvent. But also mentions Castle Trust is authorised and regulated by the Financial Conduct Authority and is a participant in the Financial Services Compensation Scheme (FSCS).
So any deposits should be protected up to £85,000.- A higher limit of £85,000 applies in relation to firms offering deposits such as banks and building societies, but Fortress Bonds and Housas* are not deposits.
https://www.castletrust.co.uk/financial-services-compensation-scheme-investments0 -
Here is an explanation as to why the FSCS protection is debatable:
https://www.telegraph.co.uk/finance/personalfinance/savings/11065151/Concerns-over-safety-of-2.25pc-savings-bond.html0 -
one of these outfits that's rather economical with the truth - avoid at all costs.0
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