Community Bonds are non-transferable and non-tradable debt instruments that are not listed on any market. Typically they are unsecured, non-convertible and like other investment, they do carry RISK so a return on investment or capital is not guaranteed.  You should therefore only ever invest as much as you are prepared to lose.

The main attraction for community investors is the social return for their communities that they see from their investment.   These investments are not suitable for those who seek income from their investment or require immediate access to their capital.

Bonds typically have terms of three to seven years, however, they can also be for longer periods. Investors receive interest upon maturity, but the interest is dependent on the performance of the Community Loan Funds, hence the returns are variable according to the profits available.  At the end of the term, the investors receive back their initial investment plus a lump sum of interest if the funds performed well. 

A Community Benefit Society is registered with, but not authorised by the Financial Conduct Authority.  A Community Bond offer is not covered by the Financial Services Compensation Scheme and investors have no recourse to the Financial Ombudsman.