If you bid for the April 2020 issuance of the 5% p.a Fixed Interest bonds, then you will already have received the message below via email. We’ve it included here for further information, and for discussion.
Time to Press Pause
As we have always pointed out, the funding for the 5% interest on these bonds was a marketing cost, one that we were prepared to make to help our customers to build a savings habit, and also because having an attractive product like this was also a way to encourage more to join us (and reward them rather than pay for expensive advertising).
As the current economic climate is so volatile and uncertain, it is prudent for us to pause this activity. We fully intend to bring these back once the time is right, and matters such as building savings for the future, and not dealing with daily issues, are more pertinent.
To be clear, all existing bonds are unaffected and you will continue to receive your monthly interest. This is only for NEW issuances.
Email - 19/03/2020
We’re getting in touch to let you know we won’t be going ahead with the upcoming April issuance of our 5% p.a. Listed Fixed Interest Bonds , and we won’t be issuing any new bonds for a while.
Your current bid has been cancelled and the amount returned to your Cash Savings.
Any existing Fixed Interest Bonds you already hold with us are not affected. You’ll continue to receive your 5% p.a. interest each month as usual. And as always, the amount you invested in bonds plus the full 12 months interest is safely held in a segregated, trustee-controlled account.
Why have we made this decision? Well, we created the bonds to introduce people to investment products without their capital being at risk. We bear the risk of this product as a company so our customers don’t have to. In a time of such uncertainty, when all companies are having to reassess non-essential costs, it would not be prudent for us to go ahead with new issuances at the moment.
While we’re disappointed to have to press pause on the bonds for now, we feel positive about their future. Our very first issuance from 2019 just matured, and in doing so proved that they are a successful, useful and accessible product. We’re proud of them, and we’re thankful to all of our customers who trusted us in our early days.
We hope to bring the bonds back when the time is right, and when we do, you’ll be the first in line.
You’ll be able to pre-register to have the same bid automatically accepted in the next issuance, whenever that is, if you’d like to. We’ll be in touch with details when the time comes.
We’ve included some FAQs below to help answer any questions you might have, but if there’s anything else you’re not sure of, you can contact us on firstname.lastname@example.org.
The Dozens team
I already hold 5% p.a. Fixed Interest Bonds with Dozens, will these be affected?
No, any other bonds you hold with us will continue to work as usual. You’ll keep receiving your 5% p.a. Interest monthly, and as always all money invested in the bonds, plus the full 12 months interest, sits in a separate trustee-controlled account on your behalf.
Will the bonds be coming back?
We plan to bring the bonds back when the time is right. As you know, our bonds are a unique product that we designed to help make higher interest more accessible, and this continues to be our mission. All the infrastructure for the bonds is in place so as soon as the time is right to bring them back we can get them up and running very quickly.
Are the bonds protected?
The bonds are not FCA regulated products, and are not covered by FSCS protection. But they were designed to teach people who have never invested before how to invest, but with their capital being at risk. So all money invested in the bonds, plus the full 12 months interest, in a separate trustee-controlled account on your behalf. This would be used to pay you in the event of any default.