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  • FIRST POST
    • Tduffy666
    • By Tduffy666 5th Jul 18, 7:20 PM
    • 2Posts
    • 0Thanks
    Tduffy666
    Best Saving Rates
    • #1
    • 5th Jul 18, 7:20 PM
    Best Saving Rates 5th Jul 18 at 7:20 PM
    Hi, does anyone have any knowledge or experience of a savings company called Castle Trust?

    Their rates seem to beat Atomís best 1 yr fixed :
    Atom - 2.05%
    Castle - 2.5%

    They claim to be FSCS protected - up to £50k

    Martin doesnít ever mention this company so I am wary of depositing with them. Just wondering what anyone else thinks ??

    Regards
Page 1
    • ColdIron
    • By ColdIron 5th Jul 18, 7:48 PM
    • 4,331 Posts
    • 5,499 Thanks
    ColdIron
    • #2
    • 5th Jul 18, 7:48 PM
    • #2
    • 5th Jul 18, 7:48 PM
    It's not a cash savings account like those from banks and building societies
    • When you buy a Fortress Bond, you are buying a loan note issued by Castle Trust Direct plc
    As an investment product you are covered by the lower FSCS limit of £50,000 with different protections. Many would argue that you are taking on more risk than is justified by a fraction of a percent reward

    Previous thread on the subject:
    https://forums.moneysavingexpert.com/showthread.php?p=73955644
    • OldMusicGuy
    • By OldMusicGuy 5th Jul 18, 8:00 PM
    • 441 Posts
    • 874 Thanks
    OldMusicGuy
    • #3
    • 5th Jul 18, 8:00 PM
    • #3
    • 5th Jul 18, 8:00 PM
    You need to read the small print. Their investment products are not deposits and are thus not covered by the £85,000 FSCS compensation. As it says on their website: "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." The £50,000 compensation relates to some kind of default by Castle Trust the entity, it does not relate to the specific products.

    That doesn't mean the products are bad, but you have less protection than with the likes of Atom and other providers that offer deposits and these will be more risky. These are not "savings" products and Castle Trust is an investment company. Again, as it says on the website "Castle Trust uses the majority of the funds you invest to advance mortgage loans to residential property owners and property developers as well as making loans to consumers."

    It's your choice if you go for them or not. You should use the search function on this website as there are some existing threads on Castle Trust. They will give you more information.

    PS what ColdIron just said......
    Last edited by OldMusicGuy; 05-07-2018 at 8:03 PM.
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