Money app dozens is launching 5% bonds
dozens customers will be able to bid for its 5% bond starting from tomorrow.
Digital banking app dozens is rolling out £1 million worth of bonds. They’ll be £100 each, last 12 months and pay a 5% annual interest rate.
dozens hasn’t officially launched yet, but since the beginning of the year the app has been available both on the Apple store and on the Google store. Consumers can download it and subscribe to the waiting list. Once they make it to the top, they get an activation code, the card and the chance to get the bonds once the bidding is open.
dozens is planning to issue new bonds every month. This round will be open to offers until 25 March.
“Hundreds” of new customers joined the list in the last week or so, dozens says, which means it may take a while before consumers who are jumping on the bandwagon these days to make it to the top.
dozens is planning a wide range of features, including a savings account and an investment option, but the 5% bond is probably the one that generated the most excitement. While a 5% annual return usually implies some kind of high-risk investment, in this case dozens puts the bond’s money and its interest rate aside in a trustee account, where it can’t be touched.
This makes the risk considerably lower than if the money was somehow re-invested. As an investment firm, dozens is fully licensed by the Financial Conduct Authority (FCA), so it says that if it were to go bust, customers’ investments would be covered by the Financial Services Compensation Scheme (FSCS) up to £50,000.
“This means the customers definitely will get their money back, regardless of what happens to us as a business,” a dozens spokesperson told Finder.