Mutual Re-Give launched a controversial 5% savings bond last month but has now been told to give savers back their money.
Re-Give has been ordered to hand back money which savers had placed in the mutual society’s 5% savings bond.
We wrote about the bond back in July, highlighting that despite its incredible rate – 5% for just a single year of saving – this was one to avoid.
The problem is that while the society is registered with the FSA – and trumpets that fact loud and clear on its website – it is not authorised by the FSA. That’s an important distinction as it means that should the society go bust, savers will not be able to claim back any of their cash from the Financial Services Compensation Scheme.
In a statement, the FSA said: "To achieve the best outcome for Re-Give and customers, Re-Give has agreed to unwind the 5% bond, cancel all applications and refund all investors.
"Investors do not need to do anything and have been sent a letter from Re-Give explaining the position and confirming the refund."
So if you’re after a savings bond that does actually offer some protection on your cash, below are the top rates on offer across a range of terms
|
Bond |
Term |
AER |
Minimum investment |
|
One year |
3.45% |
£2,000 |
|
|
FirstSave One-Year Fixed Rate Bond |
One year |
3.45% |
£1,000 |
|
18 months |
3.50%* |
£25,000 |
|
|
Two years |
3.80% |
£1 |
|
|
Two years |
3.75% |
£25,000 |
|
|
Three years |
4% |
£25,000 |
|
|
AA Three-Year Fixed Rate Savings Account |
Three years |
4% |
£1 |
|
Five years |
4.6% |
£25,000 |
|
|
State Bank of India |
Five years |
4.5% |
£1,000 |
*Anticipated profit rate
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