We are progressing through our banking licence application and at the present time, we are only able to offer investment options to existing customers with maturing Fortress Bonds. If you are an existing customer, you are able to reinvest any maturity funds with us by phone, post, or using the Self Service Portal if you have registered for an online account.

We are working on an exciting new range of savings products, which will be available to customers later this year. We will be updating our website with information on our progress towards becoming a fully authorised bank here: Castle Trust’s Banking Licence Application.

Fortress Bonds

Fortress Bonds are fixed term, fixed rate bonds that pay interest either quarterly or at maturity. For more information, you can download our Fortress Bond Information Pack and read the Frequently Asked Questions section below.

Fortress Bonds are currently only offered as a reinvestment option to customers with maturing funds.

Frequently Asked Questions

What is a Fortress Bond?

Fortress Bonds are fixed rate bonds which pay interest to investors in a lump sum, either quarterly or at maturity (depending on which bond you select) and return the original amount invested at the end of the term. When you buy a Fortress Bond, you are buying a loan note issued by Castle Trust Direct plc, and sold by Castle Trust Capital plc. Castle Trust Capital plc is a British financial institution which is authorised and regulated by the Financial Conduct Authority.

How much can I invest?

You can invest from £1,000 up to £250,000. The maximum investment per transaction online is £100,000. The Stocks and Shares ISA (2019/2020) allowance is £20,000 and all Fortress Bonds are eligible.

How often do you pay the interest on a Fortress Bond?

The interest can be paid to you either quarterly, or at maturity.

When will I receive my interest payment?

If you have chosen to take your interest as an income rather than at maturity, interest will be paid to you quarterly. All interest payments are generated on the last calendar day of the relevant quarter, and will either be received in your account three business days after this date, or a cheque will be posted to you three business days after this date. For example, if you invest in a March Fortress Bond and choose to have interest paid into your bank account each quarter, interest will be generated on the last calendar day of June, September, December and March, and you will receive the payment into your account three business days after it is generated.

When will I receive my maturity payment?

The maturity date is the first business day of the month on the appropriate anniversary after the bond was issued. For example, a one-year February Fortress Bond would mature on the first working day of March. If you choose to receive a return of the maturity value, this will either be received in your account three business days after this date, or a cheque will be posted to you three business days after this date (dependent on the payment option you choose).

Can a Fortress Bond be held as an ISA?

We offer Fortress Bonds and Fortress Bond ISAs. Fortress Bond ISAs are classed as a stocks and shares ISA. You can invest up to £20,000 with one Stocks & Shares ISA manager each tax year, with all returns free of any UK tax (subject to compliance with HMRC ISA rules).

Can I transfer an existing ISA?

As part of our journey to becoming a bank, we do not currently offer the option to transfer an existing ISA into a Fortress Bond ISA.

Is my investment covered by the FSCS?

Castle Trust is authorised and regulated by the Financial Conduct Authority and is a participant in the Financial Services Compensation Scheme (FSCS). Find out more on our FSCS page.

Are there any risks associated with investing in a Fortress Bond?

You risk losing capital should Castle Trust become insolvent.

What does Castle Trust do with the money you invest?

To generate your investment returns, Castle Trust uses the majority of the funds you invest to advance mortgage loans to residential property owners and property developers as well as making loans to consumers. The balance is held by Castle Trust in cash instruments to manage the short term cash requirement of the business.

More information about Castle Trust's Financial Strength is available here.

What are the charges?

If you invest directly with us, there are no initial or ongoing management charges. If you invest through an adviser, they may levy a charge to you for their services.

What about tax?

Income payments and returns at maturity are paid to you gross, so you'll need to determine whether you need to declare it in a self-assessment tax return (unless you have invested within an ISA). Tax treatment depends on your individual circumstances and may be subject to change.

Can I redeem my Fortress Bond early?

Fortress Bonds cannot be redeemed early except in the case of the death of the bondholder (on Fortress Bonds held in single names), or the death of both bondholders (on Fortress Bonds held in joint names). In these circumstances, the investment return will be calculated according to the value of the bond at the time of encashment, according to its interest rate.

What if I die before my investment matures?

If your investment is in your sole name, your executors will need to tell us what to do with your investment. We can either transfer ownership of the plan to one or more of your beneficiaries or, subject to our normal rules, allow your executors to cash the investment in early. If you have invested in joint names with someone else, we’d simply continue the investment in their name until the end of the term. At maturity we will pay the full amount due to the surviving investor.

When will I receive confirmation that my maturity instructions have been processed?

Your Fortress Bond will mature on the first business day of the month on the appropriate anniversary after the bond was issued. For example, March Fortress Bonds mature on the first business day of the appropriate April. You will be sent a contract note confirming the action we have taken within 5 business days of the maturity date.

Can I manage my Fortress Bond online?

If you register for an online account, you will be able update your personal details, and view valuations of your Fortress Bond online.

Can I change my mind?

You have the right to cancel your Fortress Bond for 14 days from your receipt of the cancellation form - we call this "the Cooling Off Period". The Cooling Off Period is there to enable you to cancel your investment should you change your mind. If you are in any doubt regarding the suitability of the Fortress Bond to you and your personal circumstances, please speak to a qualified financial adviser before investing. Castle Trust does not provide financial advice.

What do I need to know about Castle Trust's banking licence application?

In April 2018, Castle Trust announced its intention to become a bank. Since then we've been working closely with both UK regulators, the Prudential Regulation Authority and the Financial Conduct Authority, on our banking licence application and we submitted our application in early September 2019. On 20 March 2020, the regulators granted Castle Trust authorisation with restrictions and we are expecting to launch as a fully authorised bank in Summer 2020.

We have put together a Question & Answer section to help answer some questions our customers may have.

What do I need to know about the scheme of arrangement?

Castle Trust’s journey to become a fully authorised bank will create the opportunity for customers to convert their investments into bank deposits, still paying the same return and maturing on the same date. There is a specific legal process, called a scheme of arrangement, we are following to enable this to happen. In March 2020 we initiated this process by sending Practice Statement Letters to our Fortress Bond and Income Housa customers, if you are a Growth Housa customer you will receive your letter shortly. You can find copies of the letters on our scheme of arrangement page. Investments that are held within an ISA will retain their ISA wrapper and associated tax benefits when they are converted into bank deposits. 

Is Castle Trust a fully authorised bank?

No, not yet. We have been granted authorisation with restrictions, which enables us to test our new savings platform. We expect to become a fully authorised bank in summer 2020. We will let our customers know when we are a fully authorised bank.

Mortgages
Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Your home may be repossessed if you do not keep up repayments on your mortgage. Loans are subject to status, terms and conditions. This website is for information purposes only. If you are in any doubt regarding suitability of our products please seek advice from an accredited independent mortgage adviser.

Investments
You risk losing capital should Castle Trust become insolvent.

Castle Trust is the trading name of both Castle Trust Capital plc (company number 07454474) and Castle Trust Capital Management Limited (company number 07504954) both registered in England and Wales with registered offices at 10 Norwich Street, London, EC4A 1BD. Castle Trust Capital plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under reference number 541910. Castle Trust Capital Management Limited is authorised and regulated by the Financial Conduct Authority, under reference number 541893.

© 2020 Castle Trust. All rights reserved.

This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Please confirm that you are an intermediary before accessing information on this website.

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