King Shaves Shaving Bond

Commenting on the launch of the King Shaves "Shaving Bond", Kevin Mountford, head of banking at moneysupermarket.com, said: "Savers who spot the new "Shaving Bond" with a six per cent annual return would be forgiven for thinking it's a normal savings bond, albeit with a quirky name and novelty tagline. But they should read the terms and conditions carefully because they are buying an unlisted security with no way of getting their money out within the three year term. And, because this is an unsecured debt, there is no guarantee that King of Shaves will be able to repay the bond at the end of the term. There is no investor protection - savings are not protected under the FSCS, making it a gamble not a savings product.

"If savers want to gamble then its worth looking at Premium Bonds or alternatively you can get a risk-free FSCS protected three year product paying up to 4.75 per cent AER. If you are willing to throw caution to the wind then Zopa may even give a better return for no greater gamble, although without the added benefit of free shavings products thrown in."