A ‘fixed interest’ investment is one that pays a regular rate of interest for a specified term with the expectation that the principal will be repaid at the end of the term (maturity date). Traditionally such investments are considered safe, secure investments, but this is not always the case.
The interest rate can be set (fixed), or it can change over the term of the investment (variable).
Fixed interest investments are usually issued by corporations, government and semi-government bodies and financial institutions, such as banks, to raise funds.
This document provides information on FOS’s approach to disputes about these investments.