Thomas Lloyd offering Festzins

13 posts in this topic

Posted

quote

 

Anlageprodukt Laufzeit Kündigungsfrist Zinssatz Mindestzeichnungsbetrag

Festzins 6 Monate 6 Monate 30 Tage 3,75 % p.a. 5.000 Euro

Festzins 12 Monate 12 Monate 60 Tage 4,15 % p.a. 2.500 Euro

Festzins 24 Monate 24 Monate 90 Tage 4,85 % p.a. 2.500 Euro

 

unquote

 

This company is offering good terms to small investors - are the terms too good, has anyone here tried them at all?

Advance thanks for your opinions.

 

P.S. Sorry the table is such a mess, it looks perfect in my version so I can't correct it.

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Posted

would you have a link to the offer/quote? Would be interesting to see more details about who exactly offers what...

 

Cheerio

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Posted

Here you go:

 

https://www.thomas-lloyd.de/produkte/festzins/

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Posted

I'd be wary. It's not a Festzinskonto as you might get at a licensed bank. They seem to be selling registered bonds "Nachrangige Namensschuldverschreibungen". The Nachrangige bit should be a tip-off that someone else's money is Vorrangig. Otherwise registered bonds means your risk is losing everything. The actual issuer is something called Cleantech Infrastruktur GmbH in Frankfurt.

 

So it looks like you'd be investing in an illiquid product where you're unlikely to be able to withdraw your money expediently, you face the potential loss of all your funds, the interest rate is marginally better than banks, and the whole shebang is tied to cleantechh which has been the worst place to put your money in recent years.

 

/Result of a two minute Google from a non-expert

//Your mileage may differ

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Posted

On the face of it, it sounds good, but then I read the "RISIKOHINWEIS". Not a place I would invest my hard earned cash!

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Posted

so, just as I thought - it is NOT a normal savings plan for a fixed time with fixed interest. What you would be investing here is in a corporate bond into a new energy/infratstucture project. Which may well have a lot of merrits, I am not going into the details of the bond and the project per se. But if the company CleanTech gets into financial trouble, all your money may well be lost because with the bond you'd be among the last of the lenders in line to get some money back, banks and other more powerfull lenders are in front of you in the line.

So, it is actually a rather risky investment and if you are aware of it and find the interest attractive enough, then go ahead - but since you have not been aware of this, me thinks you'd better get a good independent financial advisor to help you with these kind of investments in order to make sure that you'll not end up loosing a lot of money in something you thought to be safe.... a lot of people in Germany learned about these things the hard way after Lehmann Bros went belly up.

 

Cheerio

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Posted

Thanks everyone for the input.

I know it's a risky offer BUT I thought, given that big business says they are aware that clean tech is the right way forward (the Chinese leadership is in on the act even) and, if I understand the ad rightly, the money is paid back when you give notice, (I was under the impression that it is a Festzinskonto), I thought it might be a good deal. However, it is obviously too risky for my meagre savings, so I won't touch it. Thanks for the advice, you guys - Starshollow, thanks for your expertise.

 

DanHessen, if you're still around, you said "the interest rate is marginally better than banks". My banks are offering max. 2% Tagesgeld and 2,25% for Festgeld, a 4% plus rate is a lot better IMHO. If you're being offered better rates I'd love to know where you bank.

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Posted

Interesting..it is well rated by Kapital-marktintern ( a specialist magazine for financial advisors - basically, compulsory reading ). Despite that, I go along with Starshollow in his opinion here. You could, in theory, lose everything.

I like the idea of clean technology etc but I´d always prefer an open equity fund in this area comprising a whole range of companies worldwide...spreading the risk and the potential without the possibility ( except in case of a nuclear war! ) of a total loss.

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Posted

mgr: I am fully with you that Clean-tec is a very good area to invest. But in this case you got the worst of two worlds...you have all the risk of investing in cleantec even though it is just a bond while at the same time you are not participating in full on the profits. Most solar or windmill closed ended funds I know and advertise to my clients offer between 6-9% p.a. for investment/venture capital. And while this may sound more risky at first glance, it isn't when you go for such sectors as sustainable energies.

so, what I am trying to say here: if you are inclined to take this kinda risk, you might as well reap in the full profits as this bond tries to offer some vague security that is not there in effect.

 

Cheerio

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Posted

Good morning and thanks for the expertise johng and starshollow. Points taken. I suppose I ought to look at slightly more adventurous investment opportunities and I probably will. Interest rates are just impossible at the moment. Starshollow, I shall certainly approach you if I dare to risk my rubles.

Many thanks for the advice.

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Posted

If you want to invest in Wertpapier / corporate bonds, you have four options:

 

- subscribe for a new issue like this - you may save a broker fee but you'll pay the full face value of the bond

 

- buy a bond in the secondary market - often bonds trade for less than face value even for relatively low risk bonds (nothing here however is risk free as say Karstadt shows) - the exception is old bonds issued before the drop in interest rates which may carry an 8% coupon or more which typically trade at higher than face value to reflect the value (now) of that high interest rate

 

- buy into a bond fund - advantage is diversification and lower risk - disadvantage is that fees are charged and if a bond's rating is dropped the fund manager may be forced to sell at a loss wheras if you hold directly you have the option to hold to maturity and assuming no bankruptcy you'll receive face value back - a big assumption however...

 

- invest in a bank's synthetic product which tracks a bond market index - after Lehman these have a bad reputation. You may pay lower fees but I would definitely only buy into one of these off the back of financial advice as I don't understand where the risk lies.

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Posted

How about this one?

 

http://www.fest-zins.de/?gclid=COTdv-6o5rACFdHJzAodgiBAwQ

 

It is mentioned to be without risk on interests or money fluctuations. Is this a regular term deposit (fest-geld)? I am not sure how would they be able to give such a high interest rates while all other banks provide very minimal. How do I know if this is truly a trust worthy bank / organisation?

 

Thanks in Advance.

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Posted

No, this is not a regular deposit or savings vehicle - it is a rather risky bond/investment which is why they offer you guarantees of sorts. How risky or not this investment is in the end will depend on the solidity of the guarantees/guarantors and that would require serious research...and still can lead to nasty surprises as all the Lehman Bros. investors in Germany found out when suddenly their "guaranteed" investments were of zero value due to the guarantor going belly up.

So, if you are looking for a truly risk-free and safe investment, this is not it. Anyone who right now tries to generate (or even guarantee) 6.5% of interest in Germany/EURO-Zones has to undergo serious risks and you need to understand this that any yield higher than what the average "FEstgeld" can offer you right now as to come with additional risks... there is no free lunch in finance, too.

 

Cheerio

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