8% Interest

[malagabob]

A company LCF is offering 8% interest on a 3 year fixed bond. 6.5% on a 2 year term for an investment of £5000. Looks too good .

[Cloverjo]

It does look too good. Is this in the UK or Spain?

[malagabob]

Didn't look any closer Clover. It just came up top of list after a
" Best savings rate search "

[AB Editor]

"LC&F does not offer financial advice. However, it should be noted that the bonds offered by LC&F are repaid via loans made to companies and therefore your capital may be at risk. Interest payments are not guaranteed if the borrower defaults. Investing in LC&F’s bonds is speculative and involves a significant degree of risk."

https://www.londoncapitalandfinance.co.uk/disclaimer

Not as safe as they might be pushing on the front page?

[New Judge]

Bear in mind this is a company bond. In effect you are loaning the company money. It is not like a building society or bank bond.

The security of your cash depends on the company remaining solvent. If they go skint bang goes your money. There is no protection from the Financial Services Compo Scheme.

[Buenchico]

Just like High Stret banks, LC&F use your money to make loans to businesses and then make their profits, and pay you interest, from the repayments made by those businesses.

However there's a BIG difference between an investor's relationship with a High Street bank and one with HC&F. If a High Street bank lends your money to a business, and that business defaults on the repayments, the bank still has to pay you your interest and return your capital. If HC&F lends your money to a business, and that business defaults on the repayments (possibly because the business has gone bust), you lose the lot.

http://forums.moneysavingexpert.com/showthread.php?t=5346049

[woofgang]

If it looks too good to be true.......

[Tilly2]

Just don't put in more than you can afford to lose.