Improve My ISA Review - Is Interest of 8.24% Genuine or Scam?
Improve My ISA are promoting an ISA paying up to 8.24%. This is the same rate as shown by Astute ISA so I wonder if it's the same underlying bond being promoted. Many investors are asking if a rate of 8.24% is too good to be true or if it's genuine.
The top page of the Improve My ISA website includes the statements above which look very similar to those that LCF used before getting their marketing shut down by the FCA. Most importantly the mention of 8.24% ISA interest rates has no information anywhere close about risk. It's only when you get to the bottom of the page in the very small print that you see:
This warning should be of equal prominence according to the FCA regulations and it's highly misleading that it is hidden away in small print at the end of the advert. Improve My ISA may not be a scam but it's very worrying that they are hiding the risks from potential investors.
The key parts to remember are that this is not a regulated investment so you could lose 100% of your money. It has no FSCS protection so you will have no recourse to any compensation should the investment fail to deliver on the numbers promised.
The advert states that the ISA pays fixed interest. This is only true if the company providing it is still in business, as investors in London Capital & Finance have found out to their cost. They were told their bonds & ISAs were paying 8% fixed interest. Some people invested shortly before they went bust and have received no interest payments and are unlikely to receive all of their money back.
On the website you can also see the claim that "investments are asset backed". Again LCF and other investors in previous bonds such as Secured Energy Bonds have discovered that asset backed is only of any use if the assets have a value. Some assets claimed by LCF to be backing their loans were actually loans to other companies and contracts to buy land (not the actual land itself)
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| Improve My ISA Review - Is it a scam? |
Please be aware when investing that your capital may be at risk and the value of some investments can go down as well as up. You may get back less than you invested.
This warning should be of equal prominence according to the FCA regulations and it's highly misleading that it is hidden away in small print at the end of the advert. Improve My ISA may not be a scam but it's very worrying that they are hiding the risks from potential investors.
The key parts to remember are that this is not a regulated investment so you could lose 100% of your money. It has no FSCS protection so you will have no recourse to any compensation should the investment fail to deliver on the numbers promised.
The advert states that the ISA pays fixed interest. This is only true if the company providing it is still in business, as investors in London Capital & Finance have found out to their cost. They were told their bonds & ISAs were paying 8% fixed interest. Some people invested shortly before they went bust and have received no interest payments and are unlikely to receive all of their money back.
On the website you can also see the claim that "investments are asset backed". Again LCF and other investors in previous bonds such as Secured Energy Bonds have discovered that asset backed is only of any use if the assets have a value. Some assets claimed by LCF to be backing their loans were actually loans to other companies and contracts to buy land (not the actual land itself)
If you are considering an investment or transferring your ISA to Improve My ISA then make sure you are fully aware of the risks and only do so if you are prepared to lose your entire investment. This is not a cash savings product and your money is not guaranteed regardless of what the company may tell you.
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