I can find 8% investments - Am I missing something??

carlnicholls
carlnicholls Posts: 5 Forumite
in Savings & investments
Hi Guys.
Perhaps being thick, naive or both. Was looking for the best paying fixed ISA was seeing figures of 1.85% but then found a couple of companies offering 8% for the same period.
Are these companies such as London Capital Investment rouges or are they not listed for another reason??

Thanks in anticipation

Carl
«13

Comments

  • Lincoln_Imp
    Lincoln_Imp Posts: 2,518 Forumite
    First Anniversary Combo Breaker First Post
    http://forums.moneysavingexpert.com/showthread.php?t=5715951

    http://forums.moneysavingexpert.com/showthread.php?t=5614486

    http://forums.moneysavingexpert.com/showthread.php?t=5582847
    Have a nice day :)
  • carlnicholls
    carlnicholls Posts: 5 Forumite
    Oh dear!

    I invested £5k with them last year for 3 years. Any suggestions what I can do or do I "just hope for the best"??
  • dunstonh
    dunstonh Posts: 116,316 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Hope they don't fail and lose the lot. And in future stick to mainstream and go by the adage that if something is too good to be true....

    There is a world of difference between a fixed term deposit getting FSCS protection and an unregulated loan note/bond that is not even a retail product and doesn't get any FSCS protection.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • carlnicholls
    carlnicholls Posts: 5 Forumite
    Indeed!!
    Its not an excuse but saw and FCA number and "thought" that meant they were legit!!
    Everything crossed now for 3 years!!!!!
  • chockydavid1983
    chockydavid1983 Posts: 713 Forumite
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    How do people come across such companies when looking for savings products? Is it something that should and could be clamped down on somehow?
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    Paid ads on search engines and 'financial sites' that are just lists of links.
    It could and should be clamped down on, but currently falls between regulators. See various comments in the threads linked in post#2.
    Eco Miser
    Saving money for well over half a century
  • ivormonee
    ivormonee Posts: 395 Forumite
    Name Dropper First Anniversary First Post
    There are P2P type loan notes/ mini bonds etc that offer these kinds of rates. There are more risks involved than sticking your savings in a building society cash ISA. It's a risk/ reward scenario. The more risk, the greater the potential reward/ loss. Safety doesn't pay and risk has to be calculated and encapsulated within a wider portfolio.
  • OldMusicGuy
    OldMusicGuy Posts: 1,758 Forumite
    First Anniversary Name Dropper First Post
    chockydavid1983 wrote: »
    How do people come across such companies when looking for savings products? Is it something that should and could be clamped down on somehow?
    It's because they pop up on a search engine with the word "ad" against them. Instead of scrolling down a few lines below the ads to find the real search results for places like Money Supermarket, they somehow seem to think it must be "guaranteed" because it is on the internet . Even though the "ad" stands for advertisement and the small print makes it clear they are unregulated.......
  • jimjames
    jimjames Posts: 17,596 Forumite
    Photogenic Name Dropper First Anniversary First Post
    edited 10 January 2018 at 8:27PM
    chockydavid1983 wrote: »
    How do people come across such companies when looking for savings products? Is it something that should and could be clamped down on somehow?

    These companies advertise on sites called "best savings rates" or similar. They can do so and Advertising Standards aren't interested saying it's regulated by FCA. FCA aren't interested because it's not regulated.

    End result is that unwary investors are buying things that are not what they seem.
    OldMusicGuy wrote: »
    It's because they pop up on a search engine with the word "ad" against them. Instead of scrolling down a few lines below the ads to find the real search results for places like Money Supermarket, they somehow seem to think it must be "guaranteed" because it is on the internet . Even though the "ad" stands for advertisement and the small print makes it clear they are unregulated.......
    That's not always the case. Many are appearing on sites about savings
    carlnicholls wrote: »
    I invested £5k with them last year for 3 years. Any suggestions what I can do or do I "just hope for the best"??

    Next time I'd suggest posting the question before you send your money off so you might avoid a costly mistake
    Remember the saying: if it looks too good to be true it almost certainly is.
  • mat6413
    mat6413 Posts: 6 Forumite
    First Anniversary First Post
    my step father, has just agreed to invest £7000 with bankway ( London based property bond ), they are offering 8% for 1 year. I have managed to talk him out of it, they are now trying the hard sell. He is very worried as the are threatening debt collection agency, even though he did not signed anything.
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