Friday, 18 March 2011

How to raise £50m in 11 days...

John Lewis has closed its 6.5% Partnership Bond for new applications after just 11 days, after its cardholders, customers and staff stumped up £50m.

The cut-off comes three weeks earlier than planned.

The cash inflow could show a new appetite for higher interest bonds. Savers face historically low returns from conventional accounts with banks and building societies.

Savings experts have warned that the bonds aren't protected by the Financial Services Compensation Scheme, which guarantees bank deposits up to £85,000.

But the John Lewis bond came hard on the heels of a similar offer from Tesco and it was followed by a new bond from Lloyds.

Investors were invited to put in lump sums of £1,000 or more for five years in return for a fixed annual return of 4.5% in cash with a further 2% paid in John Lewis gift vouchers.

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