Scarborough Channel Islands Limited has re-launched its Rollover Bond with positive enhancements. It will pay a competitive rate of up to 6.50% and can now be opened with a minimum of GBP5,000, compared to a previous GBP50,000, to make it accessible to more people.
The bond is fixed for six months and, under the terms, investors may make one withdrawal of up to 25% of the opening balance, without notice or loss of interest, prior to maturity, and can also close the bond in an emergency with 90 days loss of interest.
The Rollover Bond will offer tiered fixed rates of up to 6.50% gross pa AER, with interest capitalized or paid away at maturity. After six months, investors have the option to withdraw or transfer their funds, or they can simply allow Scarborough Channel Islands Limited (SCIL) to rollover the funds automatically into the current issue of the six-month Rollover Bond available at the time.
The bond allows a maximum investment of GBP1 million per customer. Further rollover bonds can also be opened, subject to an overall maximum holding of GBP5 million. The account is also available to nominees and trustees and is likely to be attractive to trustees of pension fund schemes.
Tony Burdin, managing director of SCIL, said: The Rollover Bond has proved popular so far with investors who want to achieve a good guaranteed rate on their cash without tying up their money for too long. However, we’ve had considerable feedback from smaller investors who are attracted to the product but perhaps don’t have large sums to put away, which is why we’ve re-launched it to make it more inclusive.