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Bank of England opts for rate hold

Date of Publication: Saturday, 14 January 2006 12:00
As expected the Bank of England's interest rate setting committee has decided to keep base rate on hold at 4.5%.

Members of the interest rate setting committee will no doubt have concluded that in the absence of comprehensive information (yet) about consumer spending patterns during the all-important Christmas holiday season erring on the side of caution was the correct path to take now.

Adding to the uncertainty has been the relative lack of information regarding wage settlements - the Bank needing to be reassured first that workers haven't been negotiating bumper pay deals in response to accelerating inflation seen last year.

At the moment the general consensus is that there's scope for one further rate cut this year. However, hopes that it could come as early as next month now appear to be receding given what information has been coming out of the High Street. There, better-than-expected trading numbers from the likes of Carphone Warehouse, Marks & Spencer, Jessops, John Lewis and GUS have suggested that the Bank may not have overstated Britain's growth prospects for this year after all. More so, given just published figures showing manufacturing output hitting a 7-month high.

What may yet give the Bank some wiggle room is the likelihood of inflation continuing to slow, thereby allowing it to meet its self imposed annual target.

Click here to see a list of high interest UK bank accounts!

Saturday, 14 January 2006 12:00
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Top 5 Current Accounts

Provider
AER
Min Bal
O/D Rate
O/D Buffer
Apply
View Full Table >
3.00%
£1
0%
£100
5.00%
£0
0%
No Offer
0%
£1
No Offer
£100
5.00%
£1
No Offer
£25
0%
£1
No Offer
No Offer

Nationwide FlexPlus Account

Nationwide
  • £10 per month gets you the following benefits:
  • Get 3.00% variable on balances up to £2,500 (no interest for balances £2.5k+)
  • 3 month Fee Free overdraft
  • Commission Free Cash Withdrawals Abroad
  • VISA debit card with every account
  • Travel Insurance - Worldwide travel insurance, including winter sports, golf, business and wedding cover for you and your family.
  • Mobile Phone Insurance - Worldwide cover if your phone's lost, stolen, or damaged.
  • Breakdown Cover - UK & European breakdown cover for you in any private car and also anyone driving your car with your permission.
  • Extended Warranty - Get an extra 12 months warranty for eligible household electrical goods.
  • Identity Theft - Get help and support if your personal data's compromised or your cards are lost or stolen.

Nationwide FlexDirect Account

Nationwide
  • Get 5.00% AER (4.89% gross p.a.) for in-credit balances up to £2,500 (fixed for the first 12 months, 1% afterwards).
  • You need to pay in at least £1,000 per month.
  • Fee-free overdraft for 12 months (subject to approval).
  • Access to special rates and exclusive products.
  • Online and mobile banking.
  • Telephone banking and free text alerts.
  • Contactless upto £30
  • No monthly fee.
  • UK call centres.

Natwest Select

NatWest
  • ** Voted the best card benefits programme of the year at the Card and Payment Awards. **
  • Free day-to-day banking without subscription charges
  • Overdraft available subject to eligibility, giving your finances some breathing space
  • Chequebook available subject to eligibility; handy when cash or cards aren't convenient
  • Monthly statements with all your transactions and your balance - by post or online. Or pick up a mini-statement from our cash machines
  • Contactless Debit Card

TSB Classic Plus Account

TSB
  • Classic Plus –
  • 5% AER on balances from £0 - £2,000
  • Pay in min £500/month, register for Internet Banking, Paperless Statements and Paperless Correspondence
  • £25 interest and fee free overdraft subject to application and approval
  • Must be over 18 and a UK resident to apply
  • Contactless Purchases upto £30 for each transaction-
  • 5% Contactless Cashback –
  • With 5% Cashback on your first £100 Contactless payments every month (T&Cs apply. Subject to eligibility. End Dec 2016)
  • Register for Internet Banking. 18+, UK resident and Classic Plus account holder to qualify
  • Cashback will be paid on qualifying purchases until 31 December 2016
  • 5% Monthly Saver –
  • Access to a 5%AER (fixed) Monthly Saver Account for 12 months. (£25 min and £250 max monthly deposits. T&Cs apply)
  • Must hold a classic plus account with TSB to qualify
  • · No introductory offer period or monthly fee
  • · Classic Plus account available to existing and new customers
  • · Access to all the features of the standard Classic account such as Money Planner, Control, SMS alerts and internet banking
  • · Transact in branch, online or over the telephone
  • · No hidden clauses – only need to meet CTO, register for internet banking, paperless statements and paperless correspondence to get the 5% interest rate

Nationwide FlexAccount

Nationwide
  • VISA debit card with every account
  • The age restriction to open the account is 18
  • Free travel insurance: multi-trip European cover worth up to £70* (conditions apply)
  • Manage your account online with an excellent internet banking service.
  • Three-month interest-free overdraft when you switch to FlexAccount
  • Free day to day banking
  • Voted Best Overall Online Provider 2009 by Your Money

RBS Select

RBS
  • Free everyday banking - no monthly subscription charges.
  • No arrangement or renewal fees - on overdrafts up to £15,000. And pay no interest on agreed overdrafts of up to £100.
  • Save on your mortgage - use your Interest Paying Current Account balance to save money with our Offset Service.
  • Easy access to your money - your debit card gives you access to almost every cash machine in the UK. You can also pay for goods and services wherever you see the logo shown on your card.
  • Online banking - manage your money 24 hours a day, 365 days a year with our telephone and internet banking services. (Except for short periods of essential maintenance.)
  • Overseas money - get money in local currency at cash machines and buy goods wherever you see the logo shown on your card.
  • Statements - monthly statements list all transactions and your current balance. You can also get mini-statements from any cash machine.

Barclays Bank Account

Barclays
  • Create your own personalised Current Account with the new Barclays Features Store - Customise your account with a range of Packs that cover gadgets, home appliances, travel and more. Simply add the Features that you want and leave out the ones that you don't. Terms, conditions and exclusions apply - read the policy documents so you know whats covered and whats not.
  • Free Text Alerts to help manage your money
  • Personalise your debit card for free with your favourite photo (image guidelines apply)
  • Contactless debit card (subject to status) allows you to make fast and secure payments for items that are priced £20 or less.
  • Online, Telephone, Mobile and Branch
  • No minimum funding required
  • Barclays Pingit - the quick and easy way to send or receive money with just your mobile
  • Free switching service available

Santander 123 Current Account

  • The New 123 Current Account pays cashback on household direct debits
  • 1% Cashback on water and council tax
  • 2% Cashback on electricity and gas
  • 3% Cashback on mobile, home phone, broadband and paid for TV packages
  • New 123 Current Account pays also pays in-credit interest
  • 1% AER on the entire balance, once the customer’s balance is £1,000 or over
  • 2% AER on the entire balance, once the customer’s balance is £2,000 or over
  • 3% AER on the entire balance, once the customer’s balance is £3,000 or over (up to £20,000)
  • £5 per month.
  • Your overdraft fee will be 19.9% EAR plus an unauthorised fee of £1 per day.
  • Get a cheque book and a Visa Debit card. You can use your Visa Debit card in shops wherever you see the Visa symbol and at virtually every cash machine in the UK and many worldwide. It also acts as a £100 cheque guarantee card
  • Get 4 Months Fee-Free Arranged Overdraft when you use the Current Account Switch Service to move your current account to us and receive a Defaqto 5 star rated service.
  • Access to your money 24 hours a day 7 days a week through our e-banking service, 750+ branches, 24-hour telephone banking service, LINK cash machine network or even by post
  • You must setup a minimum of 2 active direct debits
  • You must deposit at least £500 per month
  • You are able to Withdraw upto £300 a day
  • This account is open to NEW and EXISTING Santander customers aged 18 and above (must be UK resident)

Santander 123 Current Account

  • The New 123 Current Account pays cashback on household direct debits
  • 1% Cashback on water and council tax
  • 2% Cashback on electricity and gas
  • 3% Cashback on mobile, home phone, broadband and paid for TV packages
  • New 123 Current Account pays also pays in-credit interest
  • 1% AER on the entire balance, once the customer’s balance is £1,000 or over
  • 2% AER on the entire balance, once the customer’s balance is £2,000 or over
  • 3% AER on the entire balance, once the customer’s balance is £3,000 or over (up to £20,000)
  • £5 per month.
  • Your overdraft fee will be 19.9% EAR plus an unauthorised fee of £1 per day.
  • Get a cheque book and a Visa Debit card. You can use your Visa Debit card in shops wherever you see the Visa symbol and at virtually every cash machine in the UK and many worldwide. It also acts as a £100 cheque guarantee card
  • Get 4 Months Fee-Free Arranged Overdraft when you use the Current Account Switch Service to move your current account to us and receive a Defaqto 5 star rated service.
  • Access to your money 24 hours a day 7 days a week through our e-banking service, 750+ branches, 24-hour telephone banking service, LINK cash machine network or even by post
  • You must setup a minimum of 2 active direct debits
  • You must deposit at least £500 per month
  • You are able to Withdraw upto £300 a day
  • This account is open to NEW and EXISTING Santander customers aged 18 and above (must be UK resident)

Santander Everyday Current Account

  • A simple and straightforward current account that helps make managing your money easy and convenient.
  • 0% EAR (variable) overdraft rate.
  • No Daily Arranged Overdraft Fees for the first 4 months when you switch to us (depending on circumstances. See representative example).
  • After 4 months the Daily Arranged Overdraft Fee will be 50p per day capped at 20 days each monthly statement period (if you don't switch these Daily Arranged Overdraft Fees will start from when your account is opened.)
  • Access to our dedicated Switcher Service - It is important that you feel confident about switching to us and what is involved. Click here for full details of our simple three-step process.
  • Easy access to your account 24 hours a day with our internet and phone banking service. Plus you have access to over 1,300 Santander branches.
  • Get 4 Months Fee-Free Arranged Overdraft when you use the Current Account Switch Service to move your current account to us and receive a Defaqto 5 star rated service.
  • Withdraw upto £300 a day.
  • No interest is paid on your balance.
  • You must be aged over 18 and live permanently in the UK.

Santander 123 Mini Current Account

  • The 1|2|3 Mini Current Account is designed to provide a safe environment to learn money management and take the first steps towards financial responsibility for those aged between 11 and 18.
  • With the 1|2|3 Mini Current Account you'll get:
  • Rewarding interest rates paying 3% AER/2.96% gross (variable) on balances from £300 up to a maximum of £2,000.
  • £100+ = 1% AER
  • £200+ = 2% AER
  • £300 - £2000 = 3% AER
  • 24/7 access to your account via Online, Mobile and Telephone Banking.
  • Access nationwide via our branch network.
  • Free text and email alerts about your account.
  • The choice of a cash card or a Visa debit card.

Santander 123 Mini Current Account

  • The 1|2|3 Mini Current Account is designed to provide a safe environment to learn money management and take the first steps towards financial responsibility for those aged between 11 and 18.
  • With the 1|2|3 Mini Current Account you'll get:
  • Rewarding interest rates paying 3% AER/2.96% gross (variable) on balances from £300 up to a maximum of £2,000.
  • £100+ = 1% AER
  • £200+ = 2% AER
  • £300 - £2000 = 3% AER
  • 24/7 access to your account via Online, Mobile and Telephone Banking.
  • Access nationwide via our branch network.
  • Free text and email alerts about your account.
  • The choice of a cash card or a Visa debit card.

TSB Classic Account

TSB
  • Free banking - no charge for everyday transactions when you’re in credit.
  • You will receive a debit card with your account
  • Manage your money 24 hours a day through Internet Banking, Telephone Banking and Mobile Banking.
  • Money Planner is a free, easy-to-use Internet Banking service that introduces a new way of keeping track of your money across your TSB personal current and credit card accounts.
  • £25 interest-free planned overdraft. (Subject to application and approval).
  • £10 overdraft buffer. No overdraft fees or interest to pay if you go overdrawn (either Planned or Unplanned) by £10 or less.
  • Grace period if you go over your limit. You have until 3.30pm (UK Time) to pay in enough money to avoid any overdraft fees you may incur that day.
  • Switching to us in just 7 working days – We can help to move Direct Debits and standing orders from any existing accounts to your TSB current account.
  • Access to over 600 branches and a network of ATM's worldwide

Top 5 Savings Accounts

Provider
AER
Notice
Interest Paid
Min Bal
Apply
View Full Table >
0.75%
Instant
Annually
£1,000
1.25%
Instant
Monthly
£1,000
1.30%
30 Days
Monthly
£1,000
1.25%
Instant
Monthly
£500
0.75%
Instant
Annually
£1,000

Scottish Widows Direct Transfer Account

Scottish Widows
  • Minimum balance £1000
  • Deposits can be made by internet banking, telephone or post
  • No notice period or penalties for withdrawals
  • YOUR SAVINGS ARE PROTECTED UP TO £75,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Aldermore Easy Access Saver

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1,000
  • Flexible - add to your savings whenever you like
  • Unlimited withdrawals - access your money whenever you need it, without restriction or loss of interest
  • Easy to manage - do it online, by phone or by post
  • YOUR SAVINGS ARE PROTECTED UP TO £75,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Aldermore 30 Day Notice Account

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1
  • Flexible - add to your savings whenever you want
  • Access - unlimited withdrawals, subject to notice and without loss of interest
  • Easy to manage - do it online, by phone or by post
  • YOUR SAVINGS ARE PROTECTED UP TO £75,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

SBI UK Easy Access Savings Account

  • Minimum deposit amount of £500
  • Interest paid on balances above £500 and below £1,000,000
  • Account managed online or by visiting our branch
  • Interest paid on a monthly basis
  • Debit card provided only to the primary account holder if requested
  • Available to an individual, 18 years or over, who is ordinarily resident in the UK for tax purposes and has a permanent UK address
  • YOUR SAVINGS ARE PROTECTED UP TO £75,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Manchester Building Society Easy Access Savings Account (Issue 2)

  • Get 0.75% AER/gross on balances between £1,000 and £75,000.
  • Interest is calculated daily and will be paid annually.
  • The interest rate is variable and is subject to change.
  • Tax status: interest will be paid gross or net of tax**, depending on your status.
  • The product does not include any introductory bonuses.
  • Access is available by post, by branch or by agency.

Bank of Cyprus UK 1 Year Bond

Bank of Cyprus UK
  • Interest is paid annually
  • Early withdrawals not permitted
  • Available to individuals (single and joint applicants)
  • Conditions are available here
  • Available in Sterling only.

Top 5 Fixed Rate Bonds

Provider
AER
Duration
Min Bal
Apply
View Full Table >
1.85%
Fixed term for 3 years
£1,000
2.35%
Fixed term for 5 years
£1,000
1.35%
Fixed term for 1 year
£1,000
2.25%
Fixed term for 4 years
£1,000
1.55%
Fixed term for 3 years
£10,000

Vanquis Bank 3 Year Fixed Rate Bond

Vanquis
  • Available Online Only.
  • Deposit between £1,000 to £250,000 for THREE YEARS in ONE PAYMENT and benefit from a guaranteed savings rate.
  • Annual or Monthly interest options available.
  • Sole or Joint Accounts.
  • Restricted to UK residents 18 years or older.
  • No additional deposits, withdrawals or closure during term.
  • Vanquis Bank is a UK bank with operations and call centres in London, Chatham, Bradford and Newcastle, and is part of the Provident Financial Group, a FTSE 250 company founded over 130 years ago.
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 BY THE FSCS - Financial Services Compensation Scheme

Vanquis Bank 5 Year Fixed Rate Bond

Vanquis
  • Available Online Only.
  • Deposit between £1,000 to £250,000 for FIVE YEARS in ONE PAYMENT and benefit from a guaranteed savings rate.
  • Annual or Monthly interest options available.
  • Sole or Joint Accounts.
  • Restricted to UK residents 18 years or older.
  • No additional deposits, withdrawals or closure during term.
  • Vanquis Bank is a UK bank with operations and call centres in London, Chatham, Bradford and Newcastle, and is part of the Provident Financial Group, a FTSE 250 company founded over 130 years ago.
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 BY THE FSCS - Financial Services Compensation Scheme

Aldermore 1 Year Fixed Rate Bond

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1,000
  • Easy to manage - do it online, by phone or by post
  • You should keep at least £1,000 in your account at any one time (a gross interest rate of 0.50% will be paid on balances below this amount)
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Vanquis Bank 4 Year Fixed Rate Bond

Vanquis
  • Available Online Only.
  • Deposit between £1,000 to £250,000 for THREE YEARS in ONE PAYMENT and benefit from a guaranteed savings rate.
  • Annual or Monthly interest options available.
  • Sole or Joint Accounts.
  • Restricted to UK residents 18 years or older.
  • No additional deposits, withdrawals or closure during term.
  • Vanquis Bank is a UK bank with operations and call centres in London, Chatham, Bradford and Newcastle, and is part of the Provident Financial Group, a FTSE 250 company founded over 130 years ago.
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 BY THE FSCS - Financial Services Compensation Scheme

Bank of Cyprus UK 3 Year Bond

Bank of Cyprus UK
  • Interest is paid annually
  • Early withdrawals not permitted
  • Available to individuals (single and joint applicants)
  • Conditions are available here
  • Available in Sterling only.

Bank of Cyprus UK 2 Year Bond

Bank of Cyprus UK
  • Interest is paid annually
  • Early withdrawals not permitted
  • Available to individuals (single and joint applicants)
  • Conditions are available here
  • Available in Sterling only.

Bank of Cyprus UK 6 Month Bond

Bank of Cyprus UK
  • Interest is paid annually
  • Early withdrawals not permitted
  • Available to individuals (single and joint applicants)
  • Conditions are available here
  • Available in Sterling only.

Bank of Cyprus UK 1 Year Bond

Bank of Cyprus UK
  • Interest is paid annually
  • Early withdrawals not permitted
  • Available to individuals (single and joint applicants)
  • Conditions are available here
  • Available in Sterling only.

Aldermore 4 Year Fixed Rate Bond

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1,000
  • Easy to manage - do it online, by phone or by post
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Aldermore 5 Year Fixed Rate Bond

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1,000
  • Easy to manage - do it online, by phone or by post
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Aldermore 3 Year Fixed Rate Bond

Aldermore
  • Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
  • Fast and easy setup - open an account, complete identity checks and move your money in minutes
  • Accessible - open an account with just £1,000
  • Easy to manage - do it online, by phone or by post
  • YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Wellesley 3 Year Term

Wellesley
  • Investors can start with as little as £10
  • Rates are fixed for duration agreed.
  • All lending is asset backed
  • Wellesley decides on which cases to lend on and handle the lending and collection of funds.
  • Wellesley & Co retain a portion of every loan that they make. This portion is subordinated to the Peer to Peer lender so act as a capital buffer and takes the first loss is a borrower defaulted on their loan and Wellesley were unable to sell the asset for as much as they had lent.
  • There is a Provision Fund that investors can apply to for compensation in the case of loss of funds through a borrower not meeting loan repayments.
  • Wellesley is the first Peer to Peer lender to offer its lenders a combination of security over all loans and access to a Provision Fund.
  • Wellesley offers early access to funds. There is no charge for this service however a customer’s rate of return that they receive will be realigned to fairly represent the period that their money has been committed.
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FSCS - Financial Services Compensation Scheme.
  • Peer-to-peer lending can offer potentially attractive returns. There is a risk you may lose some or all of your initial investment. However Wellesley do offer their own compensation fund.

Bank of Cyprus UK 35 Day Notice ISA

Bank of Cyprus UK
  • Available for new subscriptions up to £15,240 for the current tax year or transfers from other ISA providers
  • Interest is paid annually into your Cash ISA
  • Access to funds subject to 35 days notice
  • Available to individual applicants aged 16 or over
  • Eligible deposits are protected up to £75,000 by the UK Financial Services Compensation Scheme

SBI UK 5 Year Fixed Rate Bond

  • Minimum deposit amount of £10,000
  • Interest paid on balances above £10,000 and below £1,000,000
  • Account managed online or by visiting our branch
  • Interest paid on a monthly basis
  • Debit card provided only to the primary account holder if requested
  • Available to an individual, 18 years or over, who is ordinarily resident in the UK for tax purposes and has a permanent UK address
  • YOUR SAVINGS ARE PROTECTED UP TO £75,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme

Wellesley 1 Year Term

Wellesley
  • Investors can start with as little as £10
  • Rates are fixed for duration agreed.
  • Wellesley & Co offers a service called 'Early Access'. This enables customers to request access to their funds before the end of a lending term.
  • All lending is asset backed
  • Wellesley decides on which cases to lend on and handle the lending and collection of funds.
  • Wellesley & Co retain a portion of every loan that they make. This portion is subordinated to the Peer to Peer lender so act as a capital buffer and takes the first loss is a borrower defaulted on their loan and Wellesley were unable to sell the asset for as much as they had lent.
  • There are Provision Funds that investors can apply to for compensation in the case of loss of funds through a borrower not meeting loan repayments.
  • Wellesley is the first Peer to Peer lender to offer its lenders a combination of security over all loans and access to a Provision Fund of £2,834,444.
  • Wellesley offers early access to funds. There is no charge for this service however a customer’s rate of return that they receive will be realigned to fairly represent the period that their money has been committed.
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FSCS - Financial Services Compensation Scheme.
  • Peer-to-peer lending can offer attractive returns. There is a risk you may lose some or all of your initial investment. However Wellesley do offer their own compensation fund.

Wellesley 2 Year Term

Wellesley
  • Investors can start with as little as £10
  • Rates are fixed for duration agreed.
  • Wellesley & Co offers a service called 'Early Access'. This enables customers to request access to their funds before the end of a lending term.
  • All lending is asset backed
  • Wellesley decides on which cases to lend on and handle the lending and collection of funds.
  • Wellesley & Co retain a portion of every loan that they make. This portion is subordinated to the Peer to Peer lender so act as a capital buffer and takes the first loss is a borrower defaulted on their loan and Wellesley were unable to sell the asset for as much as they had lent.
  • There are Provision Funds that investors can apply to for compensation in the case of loss of funds through a borrower not meeting loan repayments.
  • Wellesley is the first Peer to Peer lender to offer its lenders a combination of security over all loans and access to a Provision Fund of £2,834,444.
  • Wellesley offers early access to funds. There is no charge for this service however a customer’s rate of return that they receive will be realigned to fairly represent the period that their money has been committed.
  • YOUR SAVINGS ARE NOT PROTECTED BY THE FSCS - Financial Services Compensation Scheme.
  • Peer-to-peer lending can offer attractive returns. There is a risk you may lose some or all of your initial investment. However Wellesley do offer their own compensation fund.