#12



These are interest paying deposit accounts issued by a UK bank and as such are covered by the Financial Services Compensation Scheme.
Originally posted by Slim


Please could you provide a link to that information.



I understand that the deposit accounts are fully protected by the FSCS, however, I have not been able to ascertain whether the CITR investment is protected in the way you describe.



HMRC's rules on CITRs seem to point to this being unlikely, but I would happily be proved wrong.

#13
That they are interest bearing accounts I can see from my statements, and from which tax has in previous years been deducted. I'd be concerned if I could supply you with a link to these!

#14
I may have spoken too soon. HMRC's factsheet says:




Tax relief under the CITR scheme is available to individuals or companies who invest in accredited Community Development Finance Institutions (CDFI’s). [snip] To qualify for tax relief the investment must be a:

subscription for shares in, or securities of, the CDFI
loan to the CDFI
deposit with a CDFI that is a bank



So apparently deposits are eligible for tax relief. It doesn't say that they still qualify for FSCS protection though. Words like "deposits" and "bonds" are often used too loosely.





Whether both accounts (the CITRA and the fixed rate account that must be held at the same time) are covered by the FSCS should be very clear in the key facts document supplied before you invest. It shouldn't be something you can't show without disclosing personal information.

#16
When I started this thread I was hoping others who had received this offer would comment on whether they thought it a good deal in view of the structure & prospects for interest rates generally. An equivalent of 3.8% gross for basic rate taxpayers & more for those on higher rates (if I've done my sums right) looks good today but if interest rates spiral upwards as inflation gathers pace investors good be locked into a poor rate. So far only David42 has stated that he has received the invitation & I'd be interested to know if he intends to take it up.

I was not worried about my capital. If an accredited bank states that the accounts are covered by the FSCS guarantee, that's good enough for me. I've checked the risk factors & decided to make a modest investment. I'm not promoting this product in any way but if some of those making ill-informed negative comments want to know more for curiosity or with an interest in investing, they should go to the source - The Charity Bank. It will only cost a phone call & I've found them very polite & helpful. Let us know how you get on.

New banks are popping up like mushrooms often offering the best interest rates. Your only protection is to ensure that the accounts are protected by the FSCS. If you think this is "weasel words* or not worth the paper it's written on then better stash your money under the bed & fit a good burglar alarm..

#17



When I started this thread I was hoping others who had received this offer would comment on whether they thought it a good deal in view of the structure & prospects for interest rates generally. An equivalent of 3.8% gross for basic rate taxpayers & more for those on higher rates (if I've done my sums right) looks good today but if interest rates spiral upwards as inflation gathers pace investors good be locked into a poor rate. So far only David42 has stated that he has received the invitation & I'd be interested to know if he intends to take it up.

I was not worried about my capital. If an accredited bank states that the accounts are covered by the FSCS guarantee, that's good enough for me. I've checked the risk factors & decided to make a modest investment. I'm not promoting this product in any way but if some of those making ill-informed negative comments want to know more for curiosity or with an interest in investing, they should go to the source - The Charity Bank. It will only cost a phone call & I've found them very polite & helpful. Let us know how you get on.

New banks are popping up like mushrooms often offering the best interest rates. Your only protection is to ensure that the accounts are protected by the FSCS. If you think this is "weasel words* or not worth the paper it's written on then better stash your money under the bed & fit a good burglar alarm..
Originally posted by Tony_F


Tony_F, please don't misunderstand the reason for a lot of the comments on here.



You have come up with a product which is largely unknown, and involves CITRA, which in itself is off the radar of most people.



The product you have highlighted looks, so far, to be above board.



The reason for the comments above is that on an almost daily basis, someone appears saying that there is a wonderful product, paying 8% per year interest, totally risk free, and covered by the FSCS. Ninety nines times out of a hundred, the post turns out to be from:

i) someone who has misunderstood the product (i.e. the company is authorised by the FCA but the products are not covered by the FSCS and carry a 100% risk of loss) or

ii) someone who is pushing a high-risk unregulated product.



A lot of the regulars who post here try to close down such things as quickly as possible, and point out the flaws, so that inexperienced investors looking at these boards for guidance and ideas don't end up investing in something massively different from a deposit account that they were expecting.



Occasionally, a product such as this turns up, and is initially met with a large degree of healthy scepticism.



Please don't take it personally.



There will be many on here, including me, who would like to thank you for mentioning this product.

#18



When I started this thread I was hoping others who had received this offer would comment on whether they thought it a good deal in view of the structure & prospects for interest rates generally.
Originally posted by Tony_F


That's exactly what some of us are trying to establish. The answer depends on the level of risk involved. The rate is good for an investment where both capital and income are guaranteed. It is not good for an investment where capital is at risk. Either of these could be subject to FSCS protection.

Edit: Now that's been clarified, yes this does look like a good deal for those who can take it up.






I was not worried about my capital. If an accredited bank states that the accounts are covered by the FSCS guarantee, that's good enough for me.


The problem is, which FSCS guarantee? There is one where capital and accrued interest are protected and one where there is no protection from investment losses, but you would be covered in the event of fraud.






I've checked the risk factors & decided to make a modest investment. I'm not promoting this product in any way but if some of those making ill-informed negative comments want to know more for curiosity or with an interest in investing, they should go to the source - The Charity Bank. It will only cost a phone call & I've found them very polite & helpful. Let us know how you get on.


I had politely requested someone who has received this promotion to let me know the specific wording around the FSCS status of the two accounts mentioned. This does not seem like a big ask. You might consider me ill-informed. I think I've just had more experience of people investing into accounts that are not what they seem than you have.






New banks are popping up like mushrooms often offering the best interest rates. Your only protection is to ensure that the accounts are protected by the FSCS. If you think this is "weasel words* or not worth the paper it's written on then better stash your money under the bed & fit a good burglar alarm..


Other banks are very clear on what type of FSCS protection a specific account is subject to. You clearly do not understand that not all FSCS protection involves a guarantee of capital. The specific wording of any statement relating to the FSCS is important. Anything else is just weasel words. That's why I asked for the specific wording.

#19



That they are interest bearing accounts I can see from my statements, and from which tax has in previous years been deducted. I'd be concerned if I could supply you with a link to these!
Originally posted by Slim


Some shares are interest bearing and said interest used to be taxed at source too. In and of itself that doesn't mean a lot. What's needed is a clear statement in writing from Charity Bank as to the status of each account. An affirmative statement from someone who understands the nuances involved would be enough to satisfy me.






Slim, I'd be concerned too! .



I did find a link which points towards the CITRA accounts being cash deposits and covered by the FSCS.



https://charitybank.org/uploads/files/CITRA7-IND-v151216.pdf



The above link is for discussion only.
Originally posted by HappyHarry


This looks clear, thanks for posting it. Now, presuming the other account mentioned by the OP is also a deposit account (which seems likely), then that's me satisfied. Probably worth me making an enquiry as to what I might need to do to become eligible.



Update: Nobody mentioned the £15k minimum deposit outlined here for new customers.

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