Bank Deposit Compensation Scheme:
UK Bank Deposits

The current compensation scheme covering UK bank deposits protects depositers upto the value of £85,000 should the bank be unable to meet it's financial obligations.

WARNING! - Any bank deposits in excess of the set Government compensation scheme are at very high risk should the bank go in to financial difficulties. Simply put - you could lose 100% of your deposit(s).  RIO strongly recommends that members do not take this risk, especially since banks are offering little reward for the degree of risk taken by you (the depositer).

To quantify this risk, it is possible you could sustain a 100% loss versus set bank deposit return 2%- Risk/Reward ratio very poor! Why take the risk if you don't need to?

Recommendation; firstly check that your bank is covered by the compensation scheme if not move banks. Secondly should any member have bank deposits in excess of government compensation scheme they should open a second account, this must be at another bank to enable multiple instances of compensation.

It is important to make sure that the bank chosen isn’t owned by or a subsidiary of the bank you already have deposits with. For any member with large amounts of cash on deposit firstly this is not recommended for several reasons, the main reason being that the purchasing power of the physical money depreciates over time. For those who simply prefer having large amounts in cash on deposit then at least protect your capital, by diversifying such deposits to several unconnected bank accounts also ensuring that each deposit remains below the set compensation scheme level at least you've done your part to protect the basic capital. Not to do so would be simple disrespect for money and plain ignorance.

Capital Protection Products Vs. UK Bank Deposit Offers

There is a world of difference in Bank deposit versus RIO Fixed Income Bond in terms of both Risk and reward.

Bank deposit

Bank guarantee is limited to that set by regulatory authorities in the UK which is currently set at £85,000, as such capital over this amount is not protected and at Risk. (risk/reward very poor).

Specifically designed for small lump sum, bank deposits are usually facilitated via high street banking. (banks are exposed to risk by nature of their business) Risk/Reward ratio poor

When contemplating retirement you should not expose capital to significant risk as such bank deposit accounts holding large sums for retirement may not be wise and could be disastorous.

RIO Fixed Income Bond Series 2 (Improved Surety)

With the RIO Fixed Income Bond 100% of capital is guaranteed / no risk to capital.

The bond returns 7% before tax, however tax can be mitigated completely in many circumstances should you require information on this process we are happy to provide information.

Designed for retirement and large lump sum investments, by nature this type of vehicle bares no risk to capital and offers 100% protection - combined with a fixed return for fixed period. (risk/reward ratio Excellent)

Current United Kingdom Bank Deposit Rates

Deposit Account Type		Term	APY	Account Details
HSBC UK 2 Year Fixed Rate Bond		2 year	2.40%	Interest Rate applies to the HSBC 'fixed rate saver' product which has Interest paid monthly. De - GBP - Mar, 2013
Halifax 2 Year Fixed Rate Bond		2 year	2.30%	The interest rate AER for this product is for a 2 year term and requires a minimum for deposit of - GBP - Mar, 2013
HSBC UK 1 Year Fixed Rate Bond		1 year	2.20%	Rate applies to the HSBC 'fixed rate saver' product which has Interest paid monthly. Deposit bala - GBP - Mar, 2013
Lloyds TSB 2 Year Term Deposit		2 year	2.20%	Interest Rate is applicable to Lloyds TSB 2 year Term Deposit product - GBP - Mar, 2013
RBS 2 Year Fixed Rate Bond		2 year	2.10%	Rate is for the RBS '2 Year Fixed Rate Bond AER with with Interest Paid Annually Only. - GBP - Mar, 2013
NatWest 2 Year Fixed Rate Bond		2 year	2.10%	Rate is for a minimum £25,000+ investment and Maximum investment £500,000 for 2 year / 24 month f - GBP - Mar, 2013
Santander UK 1 Year Fixed Rate Savings Bond		1 year	2.10%	This bond deposit product requires minimum Balance from £500 up to a maximum of £2 million . The - GBP - Mar, 2013
Halifax 1 Year Fixed Rate Bond		1 year	1.90%	This Halifax 'Fixed Online Saver' product is for a 12 month / 1 year term with interest rate and - GBP - Mar, 2013
RBS 1 Year Fixed Rate Bond		1 year	1.85%	- Rate is for the RBS '1 Year Fixed Rate Bond' product with Interest Paid Annually Only with bala - GBP - Mar, 2013
NatWest 1 Year Fixed Rate Bond		1 year	1.85%	Interest rate is for amounts £25,000 - £500,000 with AER for Interest Paid Annually. - GBP - Mar, 2013
Barclays 1 Year Fixed Rate Bond		1 year	1.80%	- AER Rate is based on Barclays 1 Year Fixed Rate Savings Bond Product with Interest Paid Monthly - GBP - Mar, 2013
Bank of Scotland 1 Year Fixed Rate Bond		1 year	1.80%	The interest rate applicable AER/Gross p.a. is for a 12 month / 1 year term period with these rat - GBP - Mar, 2013
Lloyds TSB 1 Year Term Deposit		1 year	1.60%	Interest Rate is applicable to Lloyds TSB 1 year Term Deposit product - GBP - Mar, 2013
HSBC UK 6 Month Fixed Rate Bond		6 month	1.40%	Rate applies to the HSBC 'fixed rate saver' product which has Interest paid monthly. Deposit bal - GBP - Mar, 2013
Lloyds TSB 6 Month Term Deposit		6 month	1.00%	Interest Rate is applicable to Lloyds TSB 6 month Term Deposit product - GBP - Mar, 2013
Citi IPB 1 Year EUR Time Deposit		1 year	0.20%	- EUR - Mar, 2013
Citi IPB 1 Year EUR Time Deposit		1 year	0.20%	- EUR - Mar, 2013