Castle Trust -- higher interest rate bones (Deposit type not quoted)

Hi

I am looking to reinvest a chunk of expiring cash deposit money and I came across Castle Trust. It seems to be offering 2.25% for a 1 year bond with FSCS protection. Most of the market seems to be at 1.20 - 1.50%. So are they just buying market share or just making less margin. A couple of years ago I would be buying bonds on ORB, but this time I just want to stay in cash.

Anyone else gave info, experience or thought on Castle Trust

Steve

Comments

  • This is a corporate bond-type investment (in its FAQs it says, "loan note").

    The FSCS protection is quoted to be for £50k so you know it's to do with investments rather than deposits, which would be £85k. The FSCS protection for investments doesn't cover losses from the normal course of business, it's more to do with covering maladministration e.g., your stockbroker should hold 100 shares for you but for some reason only holds 80 then the FSCS would make up the difference, up to £50k. I've no idea how this would work when you're lending money directly to a company. The next line in its FAQ is, "Are there any risks associated with investing in a Fortress Bond? You risk losing capital should Castle Trust become insolvent."...

    You need to approach it as you would any corporate bond and as I cannot easily find any company financial data I, personally, wouldn't touch it. The mention of FSCS protection in such an unspecific way when it isn't a deposit account makes me trust the company even less.
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