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  • FIRST POST
    • PARTHELAST3
    • By PARTHELAST3 10th May 18, 7:30 PM
    • 2Posts
    • 0Thanks
    PARTHELAST3
    1 year bonds
    • #1
    • 10th May 18, 7:30 PM
    1 year bonds 10th May 18 at 7:30 PM
    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?
Page 1
    • bowlhead99
    • By bowlhead99 10th May 18, 7:44 PM
    • 8,083 Posts
    • 14,730 Thanks
    bowlhead99
    • #2
    • 10th May 18, 7:44 PM
    • #2
    • 10th May 18, 7:44 PM
    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?
    Originally posted by PARTHELAST3
    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
    • By PARTHELAST3 11th May 18, 10:53 AM
    • 2 Posts
    • 0 Thanks
    PARTHELAST3
    • #3
    • 11th May 18, 10:53 AM
    • #3
    • 11th May 18, 10:53 AM
    Thank you for your for your reply. Very helpful
    • HappyHarry
    • By HappyHarry 11th May 18, 11:32 AM
    • 680 Posts
    • 977 Thanks
    HappyHarry
    • #4
    • 11th May 18, 11:32 AM
    • #4
    • 11th May 18, 11:32 AM
    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.
    Originally posted by RoyaleMale
    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
    • By ColdIron 11th May 18, 11:40 AM
    • 4,332 Posts
    • 5,499 Thanks
    ColdIron
    • #5
    • 11th May 18, 11:40 AM
    • #5
    • 11th May 18, 11:40 AM
    Originally 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.
    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
    • By Reaper 11th May 18, 11:55 AM
    • 6,280 Posts
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    Reaper
    • #6
    • 11th May 18, 11:55 AM
    • #6
    • 11th May 18, 11:55 AM
    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
    • By A_T 11th May 18, 11:58 AM
    • 472 Posts
    • 311 Thanks
    A_T
    • #7
    • 11th May 18, 11:58 AM
    • #7
    • 11th May 18, 11:58 AM
    one of these outfits that's rather economical with the truth - avoid at all costs.
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