Investing in any financial product like bonds, shares or stocks is a big decision for potential investors to make – and making sure that your questions are answered by the company providing the offering is just as important as choosing a product to invest in. Here at Just, we want to give potential investors as much information as possible to you to help you make an informed decision – keep reading to discover our answers to key questions about investing in Just.
1. What are the Bonds?
The Bonds are non-readily realisable, fixed interest, transferable, debt instruments issued by Just. The Bonds allow Bondholders to lend money to Just in exchange for interest payments after maturity. The Bonds pay a fixed rate of interest that does not change over its life. The original full face value of each Bond is due to be returned 5 years after it is issued. A subscription for the Bonds should enable you to potentially achieve a higher return than you are likely to receive from your bank account, which reflects the additional risk.
2. Why are the Bonds incorporated into IFISAs?
The UK Government introduced the Innovative Finance ISA (IFISA) on 6th April 2016. This new type of ISA allows individuals to use some (or all) of their annual ISA investment allowance to invest into debentures such as the Bonds, and then to receive all the interest earned tax-free* – depending on the individual circumstances of each investor and may be subject to change in the future.
3. Can I get my investment back early?
Just pays you a fixed rate of interest on the basis that, except in exceptional circumstances your money stays invested for the whole of the agreed term. There is no current secondary market for bonds. We will look at early redemption applications on an exceptional basis and will endeavour to help Bondholders where possible but it is important that you understand that you are committing your money for the term of the Bond you select.
4. How Much Interest Can I Expect?
The terms of the Bonds are set to pay interest at a fixed rate of 8% per annum. Interest will be calculated on a simple basis and paid to each Bondholder on the Redemption Date or repurchase of the Bond. Any fees for the IFISA Plan Manager will be deducted from interest payments due to Bondholders. The fees payable are detailed in the Just ISA Terms and Conditions.
5. Am I Protected By The FSCS?
FSCS protection does not apply to the bonds. Therefore, if Just were to become insolvent or go out of business, holders of Bonds may lose all or part of their investment in the Bonds and no government or other body would be required to compensate them for such loss. There are two types of relevant FSCS protection that apply to the Bondholder investing through an ISA: deposits and investments. Deposit protection applies when money belonging to Bondholders is held in a Client Account. With investments in Bonds, this occurs initially when investor money is transferred to us by way of the ISA Manager to make an investment and when interest repayments and the repayment of capital are being held on behalf of Investors. While the money is in a Client Account, it is protected by the FSCS deposit protection. Investment scheme protection may be available in cases where loss is incurred by factors such as misspelling or misrepresentation incurred as a result of the arrangement of the investment on the ISA manager’s part.
To start your journey with Just, follow these simple steps:
1. Read all of our information on this website, we’ve made it as simple as possible.
2. Submit an enquiry to our team to show your interest in the Bond and ISA.
3. Our team will be in touch for further information.