Wednesday, 13 September 2017

London Capital Finance ISA Savings Bond reviews

A company called London Capital and Finance are heavily advertising on various savings websites for what they call a savings bond with an interest rate of 8% and others have mistakenly called a London Capital Finance ISA.

As the websites hosting the adverts are promoting savings accounts it's important to be clear - the London Capital and Finance bond is not a savings account or a cash ISA and involves risk to your money. You could lose all the money you invest as it is not FSCS protected.


London Capital Finance ISA Savings Bond reviews
London Capital Finance ISA Savings Bond reviews

The product offered by LCF appears to be genuine and not a scam but by promoting their product via savings websites they are misleading savers that this is a savings account and not a product that puts their money at risk.

Is the London Capital Finance Bond ISA Interest Fixed or Guaranteed?

The London Capital Finance bond or ISA gives the impression that the interest rate is fixed which it will be if the companies they lend the money to pay up on time. However if you read the small print then you'll see that in the event of borrowers not paying then income you get may not be covered so it isn't guaranteed.

Risks with the LCF Bond

Read the small print in the London Capital and Finance website and you can see that they admit that your money is at risk and that this is not a savings account. However the phrasing and words used in the adverts - 100% track record, fixed interest, FCA regulated - all appear to give the impression that the bond is secure. The replies that their staff give on social media also downplay the risks of the London Capital Finance ISA bond.

 In reality it is based on loans to companies not a cash savings account and you could lose ALL your money and not receive income payments.

is london capital bond fscs protected?
is london capital bond fscs protected?


2 comments:

  1. My 12 month fixed savings account has just matured & have now put the capital into a 2 year ISA paying 6.5%.

    The interest was paid into my bank on the day it matured so I wouldn't hesitate to invest with them again!

    ReplyDelete
    Replies
    1. So based on it working short term you're advising others to take out a bond that could lose all their money?

      Delete