1 year bonds

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PARTHELAST3
PARTHELAST3 Posts: 3 Newbie
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in Savings & investments
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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  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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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.
  • PARTHELAST3
    PARTHELAST3 Posts: 3 Newbie
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    Thank you for your for your reply. Very helpful
  • HappyHarry
    HappyHarry Posts: 1,588 Forumite
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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.
  • ColdIron
    ColdIron Posts: 9,051 Forumite
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    Originally Posted by RoyaleMale viewpost.gif
    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.
    Well the £85,000 protection definitely does not apply
    • 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.
    As for the lower limit, it's far from clear cut

    https://www.castletrust.co.uk/financial-services-compensation-scheme-investments
  • Reaper
    Reaper Posts: 7,283 Forumite
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    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.html
  • A_T
    A_T Posts: 959 Forumite
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    one of these outfits that's rather economical with the truth - avoid at all costs.
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