LendInvest has issued 8.25% APY bonds that offer higher interest rates than CDs and savings accounts, maturing in 2030 during a time of rate cuts by the Federal Reserve. Investors need £1,000 to start with multiples of £100, but retail bonds lack the safety of bank accounts if the issuer goes bankrupt.

To generate high yields from retail bonds, investors must assess the issuer’s financial stability. LendInvest previously issued 5.25% APY bonds in 2017, and the current 8.25% rate reflects changes in the Bank of England’s base rate from 0.25% in 2017 to 4% now.

With an 8.25% APY, LendInvest’s bonds may seem attractive, but some investors may find better returns in index funds or growth stocks. The higher APY comes with increased risk, and once invested in retail bonds, funds cannot be allocated elsewhere.

Read more at Yahoo Finance: Is This Retail Bond’s 8.25% APY Too Good To Be True?