Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24
Bitcoin Trend Forecast, Crypto's Exit Strategy - 31st May 24
Zimbabwe Officials Already Looking to Inflate New Gold-Backed Currency - 31st May 24
India Silver Imports Have Already Topped 2023 Total - 31st May 24
Gold Has Done Its Job – Isn’t That Enough? - 31st May 24
Gold Stocks Catching Up - 31st May 24
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

ReGive 5% 1 Year Fixed Rate Savings Bonds Too Good to be True?

Personal_Finance / Savings Accounts Jul 18, 2012 - 06:15 AM GMT

By: Nadeem_Walayat

Personal_Finance

Best Financial Markets Analysis ArticleWhilst trawling through the internet, seeking a home for part of my dwindling cash mountain, I happened on what sounds like a too good to be true 1 year fixed rate savings bond paying 5% offered by ReGive, Who's ReGive ? I and probably most of you reading this will have never heard of this investment firm before that is seeking to hook interest starved savers with a high interest rate of 5% when the competition can barely muster 3.5%.


The ReGive website contains many reassuring words and symbols including that of the FSA that implies FSA protection for depositor funds, however on digging deeper there is no such guarantee!

Regive states:

ReGive is incorporated as an Industrial and Provident Society for the Benefit of the Community, registered with the UK Financial Services Authority (FSA) under the Industrial and Provident Societies Act 1965. This corporate structure exempts Re-Give from a number of FSA and other regulations and permits it to offer shares and bonds directly to the public.

But what about being covered by the FSCS?

Are you covered by the Financial Services Compensation Scheme (FSCS)?

No.

However, this does not mean that your investment is at greater operational risk. On the contrary, because we are not under the FSCS - it means that we are exceptionally careful, extra vigilant and especially prudent when looking after the funds under our management.

I cannot be the only one seeing the flashing red danger sign?

Isn't my money at greater risk if it is not covered by the Financial Services Compensation Scheme (FSCS)? 

The answer depends on what type of risk you are referring to. In general, you can save with confidence in the knowledge that all savings bonds are protected and backed by Re-Give: a global ethical financial institution, mutual society and savings specialist.

What happens if you go bust?

Re-Give's investor protection measures ensures that if it becomes insolvent – its administrators will have rapid access to investor funds so that they can pay back all investors quickly, along with any accrued returns.

So let me get this straight, if ReGive goes bust then they will bail themselves out? The promises ReGive are making are not backed up with any details.

So how does ReGive hope to pay the 5% return it is promising depositors?

This is simply because we operate more effectively and our operational costs are far lower than most other providers - and because we don't function like a bank.

Well that's clear, Re-Give is NOT a bank or building society.

Who are Re-Give?

The FSA lists Re-Give as a limited company registered with them as of 21st Dec 2011 under the Industrial and Provident Act 1965.

I can only imagine what the headlines in the mainstream press will be a year or 2 from now!

Would I invest in ReGive 1 year fixed rate or any other term Savings Bonds - NO

Would I recommend ReGive fixed rate savings bonds - NO

Why?

The bottom line is these 'bonds' are NOT protected by the FSCS, therefore these 'bonds' appear to be high risk products, and I mean high risk investments, in my opinion depositors are at greater risk of loss than direct equity investments in large cap consistent paying dividend stocks.

Seriously though, where is the FSA ? Sleeping again? They need to do their jobs asap else it is not going to look pretty for a number of people!

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2012 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of three ebook's - The Inflation Mega-Trend; The Interest Rate Mega-Trend and The Stocks Stealth Bull Market Update 2011 that can be downloaded for Free.

Stocks Stealth Bull Market Ebook DownloadThe Interest Rate Mega-Trend Ebook DownloadThe Inflation Mega-Trend Ebook Download

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 600 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Roger
20 Jul 12, 21:06
ReGive

Could it be another Ponzi scheme? It could be. A 5% return sounds too good to be true. I would stay away from this investment.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in