“Debt is an inexhaustible fountain of dishonesty.” – Henry Ward Beecher
This is the risk that the organization with whom you invest your hard earned savings goes belly up and is unable to repay you. The famous cases are Cambridge Credit, Estate Mortgage and Wattle – all these companies offered interest rates well above what was being offered elsewhere in the market. Never forget the saying: the higher the return, the higher the risk. If you do wish to invest in interest bearing accounts, don’t rely on extravagant advertisements in the newspapers but go through a financial adviser or stockbroker to gain the benefit of their research.