4 year bonds with an annual interest rate of 8.25% !!!! paid quarterly from providence bonds - HotUKDeals
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4 year bonds with an annual interest rate of 8.25% !!!! paid quarterly from providence bonds

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Providence bonds are offering mini bonds with a 4 year term and an annual interest rate of 8.25%. This is one of the highest interest rates i have seen on any form of saving. Minimum buy is £1000.
Slothlord108 Avatar
2y, 2m agoPosted 2 years, 2 months ago
Providence bonds are offering mini bonds with a 4 year term and an annual interest rate of 8.25%. This is one of the highest interest rates i have seen on any form of saving.
Minimum buy is £1000.
Slothlord108 Avatar
2y, 2m agoPosted 2 years, 2 months ago
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3 Likes #1
" Investment in Providence Bonds involves risk and you may get back less then you invested. Providence Bonds are not covered by the Financial Services Compensation Scheme. "

Yea right, easy way to lose money.
3 Likes #2
put me down for £200,000 you pay for them I will pay you back later after I have just looked down the back of the sofa to find the rest of me cash
#3
Anything with decent returns involves risk. Thats the way it goes.
Any case these guys have a good reputation. Look it up
#4
Slothlord108
Anything with decent returns involves risk. Thats the way it goes.
Any case these guys have a good reputation. Look it up


No thanks, I value my hard earned far too much.
#5
Inactive
Slothlord108
Anything with decent returns involves risk. Thats the way it goes.
Any case these guys have a good reputation. Look it up


No thanks, I value my hard earned far too much.
what would you rather invest it in/ do to grow your savings?
1 Like #6
OP have you done it yourself?
#7
Inactive
" Investment in Providence Bonds involves risk and you may get back less then you invested. Providence Bonds are not covered by the Financial Services Compensation Scheme. "

Yea right, easy way to lose money.
It does seem like they have some protection though...

There is a full parent guarantee of all liabilities to the Bondholders;

Factoring is itself a lower-risk means of lending to businesses. Clients undergo rigorous due diligence and we demand security against the funding. Any bad debts can be sold to collection agencies.

There is a debenture over all the assets of the Company, in favour of the Security Trustee.
Anyone know what it means though? :D
#8
Transformers
OP have you done it yourself?
I finished uni last year and just starting working 3 months ago (had a gap year), as a result i have nothing with which to buy the bonds with other then willpower.
6 Likes #9
Slothlord108
Transformers
OP have you done it yourself?
I finished uni last year and just starting working 3 months ago (had a gap year), as a result i have nothing with which to buy the bonds with other then willpower.
http://i.imgur.com/kpTtT.gif
#10
If i had like £7000 min saved up i would go for it
1 Like #11
Slothlord108
Inactive
Slothlord108
Anything with decent returns involves risk. Thats the way it goes.
Any case these guys have a good reputation. Look it up


No thanks, I value my hard earned far too much.
what would you rather invest it in/ do to grow your savings?


I would sooner put it under my mattress than trust it to this non secure outfit.
#12
Forget it, I've got the name of a good horse.
1 Like #13
Inactive
" Investment in Providence Bonds involves risk and you may get back less then you invested. Providence Bonds are not covered by the Financial Services Compensation Scheme. "

Yea right, easy way to lose money.

Even more that it doesn't explain what that means that if the company decides to go bust/do a runner/have some restructuring or just about any other bad issues you end up out of not just your interest but also out of your original cash investment with no way to get the money back. I think I'd rather not risk my money in what if's and up to's and aim for something a bit more reasonable.

Their website even uses very positive words that are troubling when you think about it like "THE EXPECTED RETURNS". Expected sounds good in this case, but makes little if not no clear mention that the return could be a loss and as far as I can see actively avoids using the word.
2 Likes #14
http://i734.photobucket.com/albums/ww345/SouthSideCheat/ApftSg4I1l6y72x6GJXkK52ho1_400.jpg
#16
Astec123
Inactive
" Investment in Providence Bonds involves risk and you may get back less then you invested. Providence Bonds are not covered by the Financial Services Compensation Scheme. "

Yea right, easy way to lose money.

Even more that it doesn't explain what that means that if the company decides to go bust/do a runner/have some restructuring or just about any other bad issues you end up out of not just your interest but also out of your original cash investment with no way to get the money back. I think I'd rather not risk my money in what if's and up to's and aim for something a bit more reasonable.

Their website even uses very positive words that are troubling when you think about it like "THE EXPECTED RETURNS". Expected sounds good in this case, but makes little if not no clear mention that the return could be a loss and as far as I can see actively avoids using the word.
expected returns is a standard financial term and is used for most types of investment, the reason its expected is due to the effects of inflation and other variables which may alter the interest rate or actual rate of return slightley.
In a sense a bond is more a type of loan then anything else and there is a legal obligation there. They are pretty safe. Mind you some would have said government funding was 100% safe before the recession and most of europe's governments having to be bailed out of debts and more not beig able to pay them.
#17
#18
Heres another good article, describes the risk and everything else u need to know perfectly:
http://www.thisismoney.co.uk/money/investing/article-2831817/Providence-launches-mini-bond-build-business-finance-brand-UK.html
#19
too risky. even for me who invest in the stock market.
#20
mutley1
too risky. even for me who invest in the stock market.
your saying this is riskier then stocks? In this climate?
#21
What's the rating of these bonds?
3 Likes #22
So we are expected to take the financial advice of someone that has just left Uni, has no actual money to invest for themselves, and seems to not fully understand the element of risk involved in this item.oO
#23
Inactive
So we are expected to take the financial advice of someone that has just left Uni, has no actual money to invest for themselves, and seems to not fully understand the element of risk involved in this item.oO

I don't think he's offering advice; just showing a service.
#24
Inactive
So we are expected to take the financial advice of someone that has just left Uni, has no actual money to invest for themselves, and seems to not fully understand the element of risk involved in this item.oO
im not offering advice, hence why ive posted those articles on the bonds so you can read up and make your mind for yourself.
And fyi after completing a finance degree with a 1st and working in finance for the past 3 months, i understand the risk involved just fine.
#25
Slothlord108
Inactive
So we are expected to take the financial advice of someone that has just left Uni, has no actual money to invest for themselves, and seems to not fully understand the element of risk involved in this item.oO
im not offering advice, hence why ive posted those articles on the bonds so you can read up and make your mind for yourself.
And fyi after completing a finance degree with a 1st and working in finance for the past 3 months, i understand the risk involved just fine.


That really puts my mind at ease.

Anyway, you feel free to take the risk, I will pass on this one, I don't have any " finance degree " but I can tell a poor risk from about a mile away.
#26
Just to be clear there is no financial services compensation, however there is a full parent guantee. This means that if providence bonds defualts on payment, there is a legal obligation for its parent company providence global, which is massive and well established in america, brazil and asia, to liquidate its tangible assets in order to return our funds. Also they are under regulation by the FCA, so if they decide not to do this, the fca have the right to seize their assets and do it for them.
#27
i haven't had a chance to look at the book value of providence global's tangible assets but considering this will be their first venture into the uk market its probably safe to assume that they would have the necessary funds available in liquidable assets if things go wrong. But this is where some of the risk lies.
#28
Inactive
Slothlord108
Inactive
So we are expected to take the financial advice of someone that has just left Uni, has no actual money to invest for themselves, and seems to not fully understand the element of risk involved in this item.oO
im not offering advice, hence why ive posted those articles on the bonds so you can read up and make your mind for yourself.
And fyi after completing a finance degree with a 1st and working in finance for the past 3 months, i understand the risk involved just fine.


That really puts my mind at ease.

Anyway, you feel free to take the risk, I will pass on this one, I don't have any " finance degree " but I can tell a poor risk from about a mile away.
i would if i had the funds tbh,
Fixed rate nisa's are offering about 2.5% max and current accounts are about 3% at the very most, maybe 4% with tsb but only to £2000. Premium bonds dont offer much and the government isnt currently offering any other forms of financial savings.
There is the stock markets but thats a different animal all together....
#29
Slothlord108
Inactive
Slothlord108
Inactive
So we are expected to take the financial advice of someone that has just left Uni, has no actual money to invest for themselves, and seems to not fully understand the element of risk involved in this item.oO
im not offering advice, hence why ive posted those articles on the bonds so you can read up and make your mind for yourself.
And fyi after completing a finance degree with a 1st and working in finance for the past 3 months, i understand the risk involved just fine.


That really puts my mind at ease.

Anyway, you feel free to take the risk, I will pass on this one, I don't have any " finance degree " but I can tell a poor risk from about a mile away.
i would if i had the funds tbh,
Fixed rate nisa's are offering about 2.5% max and current accounts are about 3% at the very most, maybe 4% with tsb but only to £2000. Premium bonds dont offer much and the government isnt currently offering any other forms of financial savings.
There is the stock markets but thats a different animal all together....


But all of them come with the Government backed £85,000 guarantee, your Providence Bond does not, that is the cut off point for me.

Oh and anything from the USA, I look upon with deep suspicion when it comes to finance, they do not have a good track record.

Remember Fanny Mae and Freddie Mac ?

http://www.investopedia.com/articles/economics/08/fannie-mae-freddie-mac-credit-crisis.asp
#30
Inactive
Slothlord108
Inactive
Slothlord108
Inactive
So we are expected to take the financial advice of someone that has just left Uni, has no actual money to invest for themselves, and seems to not fully understand the element of risk involved in this item.oO
im not offering advice, hence why ive posted those articles on the bonds so you can read up and make your mind for yourself.
And fyi after completing a finance degree with a 1st and working in finance for the past 3 months, i understand the risk involved just fine.


That really puts my mind at ease.

Anyway, you feel free to take the risk, I will pass on this one, I don't have any " finance degree " but I can tell a poor risk from about a mile away.
i would if i had the funds tbh,
Fixed rate nisa's are offering about 2.5% max and current accounts are about 3% at the very most, maybe 4% with tsb but only to £2000. Premium bonds dont offer much and the government isnt currently offering any other forms of financial savings.
There is the stock markets but thats a different animal all together....


But all of them come with the Government backed £85,000 guarantee, your Providence Bond does not, that is the cut off point for me.

Oh and anything from the USA, I look upon with deep suspicion when it comes to finance, they do not have a good track record.

Remember Fanny Mae and Freddie Mac ?

http://www.investopedia.com/articles/economics/08/fannie-mae-freddie-mac-credit-crisis.asp

The government guarantee comes because they are offering such low levels of interest and they know they can make a fair profit from investments using you funds. Also there is a closing amount for providence bonds, if this amount exceeds the total net worth of providence globals tangible assets, then there is high risk. Im at work so cant work this out right now.
And yh its fair to look upon anyone with suspicion, especially when ur own funds are at risk but some of the most succesful establishments are from the usa
#31
Inactive
Slothlord108
Inactive
Slothlord108
Inactive
So we are expected to take the financial advice of someone that has just left Uni, has no actual money to invest for themselves, and seems to not fully understand the element of risk involved in this item.oO
im not offering advice, hence why ive posted those articles on the bonds so you can read up and make your mind for yourself.
And fyi after completing a finance degree with a 1st and working in finance for the past 3 months, i understand the risk involved just fine.

That really puts my mind at ease.

Anyway, you feel free to take the risk, I will pass on this one, I don't have any " finance degree " but I can tell a poor risk from about a mile away.
i would if i had the funds tbh,
Fixed rate nisa's are offering about 2.5% max and current accounts are about 3% at the very most, maybe 4% with tsb but only to £2000. Premium bonds dont offer much and the government isnt currently offering any other forms of financial savings.
There is the stock markets but thats a different animal all together....

But all of them come with the Government backed £85,000 guarantee, your Providence Bond does not, that is the cut off point for me.

Oh and anything from the USA, I look upon with deep suspicion when it comes to finance, they do not have a good track record.

Remember Fanny Mae and Freddie Mac ?

http://www.investopedia.com/articles/economics/08/fannie-mae-freddie-mac-credit-crisis.asp

Cant say that I do. Maybe if you name some of their songs, that might help? :|
#32
Slothlord108
Inactive
Slothlord108
Inactive
Slothlord108
Inactive
So we are expected to take the financial advice of someone that has just left Uni, has no actual money to invest for themselves, and seems to not fully understand the element of risk involved in this item.oO
im not offering advice, hence why ive posted those articles on the bonds so you can read up and make your mind for yourself.
And fyi after completing a finance degree with a 1st and working in finance for the past 3 months, i understand the risk involved just fine.


That really puts my mind at ease.

Anyway, you feel free to take the risk, I will pass on this one, I don't have any " finance degree " but I can tell a poor risk from about a mile away.
i would if i had the funds tbh,
Fixed rate nisa's are offering about 2.5% max and current accounts are about 3% at the very most, maybe 4% with tsb but only to £2000. Premium bonds dont offer much and the government isnt currently offering any other forms of financial savings.
There is the stock markets but thats a different animal all together....


But all of them come with the Government backed £85,000 guarantee, your Providence Bond does not, that is the cut off point for me.

Oh and anything from the USA, I look upon with deep suspicion when it comes to finance, they do not have a good track record.

Remember Fanny Mae and Freddie Mac ?

http://www.investopedia.com/articles/economics/08/fannie-mae-freddie-mac-credit-crisis.asp

The government guarantee comes because they are offering such low levels of interest and they know they can make a fair profit from investments using you funds. Also there is a closing amount for providence bonds, if this amount exceeds the total net worth of providence globals tangible assets, then there is high risk. Im at work so cant work this out right now.
And yh its fair to look upon anyone with suspicion, especially when ur own funds are at risk but some of the most succesful establishments are from the usa


Would that include Bernie ?

http://en.wikipedia.org/wiki/Bernard_Madoff
1 Like #33
Slothlord108
Inactive
Slothlord108
Inactive
Slothlord108
Inactive
So we are expected to take the financial advice of someone that has just left Uni, has no actual money to invest for themselves, and seems to not fully understand the element of risk involved in this item.oO
im not offering advice, hence why ive posted those articles on the bonds so you can read up and make your mind for yourself.
And fyi after completing a finance degree with a 1st and working in finance for the past 3 months, i understand the risk involved just fine.

That really puts my mind at ease.

Anyway, you feel free to take the risk, I will pass on this one, I don't have any " finance degree " but I can tell a poor risk from about a mile away.
i would if i had the funds tbh,
Fixed rate nisa's are offering about 2.5% max and current accounts are about 3% at the very most, maybe 4% with tsb but only to £2000. Premium bonds dont offer much and the government isnt currently offering any other forms of financial savings.
There is the stock markets but thats a different animal all together....

But all of them come with the Government backed £85,000 guarantee, your Providence Bond does not, that is the cut off point for me.

Oh and anything from the USA, I look upon with deep suspicion when it comes to finance, they do not have a good track record.

Remember Fanny Mae and Freddie Mac ?

http://www.investopedia.com/articles/economics/08/fannie-mae-freddie-mac-credit-crisis.asp
The government guarantee comes because they are offering such low levels of interest and they know they can make a fair profit from investments using you funds. Also there is a closing amount for providence bonds, if this amount exceeds the total net worth of providence globals tangible assets, then there is high risk. Im at work so cant work this out right now.
And yh its fair to look upon anyone with suspicion, especially when ur own funds are at risk but some of the most succesful establishments are from the usa

The government guarantees has nothing to do with the interest rates. Its to do with the regulated institutions.

Maybe not the best example, but who would you rather deposit your salary with? A regulated high street bank, or Grabit & Leggit a small unregulated outfit?
#34
One bit of advice that has served me well for many years;

If it looks too good to be true, it probably is.

Now I know that the OP is probably well intentioned, but on this occasion I would politely suggest;

Dead horses and flogging spring to mind
1 Like #35
Inactive
One bit of advice that has served me well for many years;

If it looks too good to be true, it probably is.

Now I know that the OP is probably well intentioned, but on this occasion I would politely suggest;

Dead horses and flogging spring to mind
this kind of thing needs a good discussion/ debate so everyone can see the good and bad points of the investment and decide for themselves, thanks for your input inactive and expressing your opinion so politely :)
#36
If only these were part of NSANDI bonds...wishful thinking. i'd hate to see my face 4 years let alone 1 year down the line disappointed with the outcome if it goes tits up. Mind u this is just me being negative or cautious? the choice to pursue this is entirely your's. Although i would only risk something which i don't mind loosing in which case is the minimum £1000.
#37
superspeedy
If only these were part of NSANDI bonds...wishful thinking. i'd hate to see my face 4 years let alone 1 year down the line disappointed with the outcome if it goes tits up. Mind u this is just me being negative or cautious? the choice to pursue this is entirely your's. Although i would only risk something which i don't mind loosing in which case is the minimum £1000.
i imagine it will be a while before nsi start offering these kind of interest rates

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