Castle Trust ISA's

[towny44]

Anyone have any experience investing in Isa's with this firm, currently they are offering top interest rates eg 3.25% for 3 yrs, but it seems too good to be true.

[Dennis The Menace]

Hi John

I remember this firm being in the press the last time they had eye catching rates. I think there was two issues from memory.

Firstly, can't remember why, but there was some concern if they would be covered by the financial services compensation/protection scheme (as non-banking deposits I think they have lower protection of 50k anyway, but I think there was some doubt over being covered at all)

The other point, I think, was that there was no early surrender option - as you probably know, most fixed rate/terms have this option subject to a penalty of, say 180-240 days interest. the only "get out" with these products are on death so, in the event you need the money unexpectedly, you couldn't call on these investments until the end of the term.

That's not to say they are bad products/company necessarily, the rates are very good (and allow transfers in), so very tempting in today's market. However, worth getting clarification re the FSCS protection and ensuring you've got plenty of other accessible funds elsewhere should you need them.

Let us know how you get on with any info/investment.

[Dennis The Menace]

Hi again John, think this was the article last year :

http://www.telegraph.co.uk/finance/pers ... -bond.html