A firm that has drawn more than £28m of savers’ money into high-risk products is offering a cash bond that provides no protection should the company go bust. Cash savings, such as fixed-rate bonds, are usually covered by the Financial Services Compensation Scheme (FSCS), up to a maximum of £85,000. However, Basset & Gold — a sponsor of West Ham United FC but which has no link to the club’s chairman, David Gold — offers a five-year “cash bond” at 3.14% that has no FSCS protection. The rate is tempting against the best fixed-rate Isas, often referred to as cash bonds, which pay about 2.7% and do come with FSCS cover. Basset & Gold also offers “pensioner bonds”, aimed at people aged 55-plus, paying 4.32%.…

Source: The Times April 27, 2019 23:03 UTC