When will you be launching interest-bearing accounts?
Here you go
To be fair, that’s a decent question to ask the Dozens team. We’re hoping (I think) for app access to start this month - but I haven’t seen any timings on the bond.
Do you know if it’ll be available at launch?
Apologies I thought this was obvious and yet I can’t find any information stating either way actually so you may be right.
Why consider launching without it? It’s the standout (only so far) selling point!
I’m expecting we will be able to point you to more comprehensive information about the bond and timings very shortly, so have not yet jumped in here.
We will give our customers the opportunity to buy the fixed interest bonds from the start. These will be available from the beginning of February, but they are sold in “issuances” which means that if one particular one is sold out, you may need to wait for the next one. At the moment, the plan is to have them on a monthly schedule, but this might vary depending on the demand levels.
Thanks Robert, any indication of provider, coupon & term yet. Or you guys still working on this product??
Yes, these ones are easy
dozens will be the provider since we are creating these bonds ourselves. This will be a listed product so we are putting together the final touches and documents as we speak.
The coupon, is our 5% fixed rate (if I understand you correctly)
The term will be 12 months for each issuance. We will be making these available in tranches so the first will be £100,000 and then there will be more once this has closed.
Thanks Robert, final question from me.
So the first tranche will be for a minimum placement of £100k per customer/investor?
The minimum investment will be just £100 per customer.
Our mission is to make decent returns accessible to the smaller investor and individual saver, not those with very large funds or to institutional investors.
We are listing these bonds and making them available to our customers via the app so that as many people as possible can get a decent return on their savings.
If you do have £100,00 spare, please do come and talk to us, but you will have many investment opportunities available to you in the market already.
The fuller details of how this works will be published very soon
Sounds good, Aritra’s former HSBC RBWM so that makes sense.
I look forward to the release of the bond and additional features.
If you need beta customer’s @robert, do let me know.
Thanks @robert, much appreciated!
As a follow up, I was wondering just how easy access the bond is? Can you withdraw partial amounts at any time? And can you add to it after the initial deposit?
Thanks in advance!
Could you unpack that for us? (I get HSBC!)
Will there be an interest penalty for taking money out early such as 90 days interest etc
I think it’s Retail Banking & Wealth Management…or summat!
No there won’t be, the bonds will last 12 months on their own. But if you want to sell them back to Project Imagine/Dozens early then you can at the 5% rate.
I’m mean I’m planning to keep all of it in for the full time but its good to know
Will there be a maximum amount that each account can put in first time round?
Hi Simon ,
Dozens have said in their latest Instagram post comments that there will be no set limit on the number you can purchase.
However, ‘practical restrictions’ may limit how many you can buy at once. It’s not entirely clear what this means yet though.
I’m looking forward to the blog post myself to get more clarity on how the bonds work
Thanks, on the back of your reply I have followed Dozens on instagram.
I always forget to follow on social media.
You will not be able to sell only some of your bonds. You would need to sell the whole amount that was bought together BUT …
You can buy bonds from future issuances at any time, so if you have further savings, or want to reinvest a portion of your previous amount, then you can buy more bonds at that time. The 12-month period (or whatever is on offer at that point) simply restarts.
No, there are no penalties. You keep the monthly interest that has been paid to you already. However, you will not get paid any partial interest for the month of the withdrawal, so it is worth timing this carefully.
Not as such.
dozens will list a certain number (and therefore value) of bonds at one time. We package them so that our customers can buy them in £100 bonds so there is a minimum of £100. The maximum is therefore the total amount we are listing at that time, minus what has already been sold.
If we have an issuance of £100,000 in a month, say, there could be 10 buyers if they buy an average of £10,000 each or there could be 1000 buyers is they buy £100 each.
If you want to buy £10,000 worth, but there are only £5,000 worth of bonds available at that moment, then we will not be able to meet YOUR whole request that month until we have the next issuance of bonds available, but we are not capping individuals as such.
That is what we mean by ‘practical’ limits.
If the total amount is sold out, then we will then offer further issuances as quickly as we can so there should always be some bonds available for your to buy with your savings.